Earth Equity News

Ford Scion Looks Beyond Bailout to a Green Agenda. By Bill Vlasic, NYTimes, November 24, 2008. "William C. Ford Jr., the executive chairman and scion of the founding family of the Ford Motor Company, has been preparing for a bigger role in the industry's plan for survival... Mr. Ford has been working behind the scenes, meeting one-on-one with President-elect Obama in August, conferring with his senior economic advisers, and teaming up with Gov. Jennifer Granholm of Michigan to push a vision of a leaner, greener auto industry... While Ford's chief executive, Alan R. Mulally, joined his counterparts from G.M. and Chrysler in testifying before Congress last week, Ford is not asking for an immediate bailout from Washington for now. The company has enough cash on hand -- $18.9 billion, as well as a $10.7 billion line of credit with private lenders -- that will keep it running through 2009 without cutting development of its next generation of more fuel-efficient cars. While Ford cannot continue to burn cash indefinitely, it is also not on the verge of bankruptcy like G.M. and Chrysler. And the health of the company presents a unique opportunity for Mr. Ford, 51, who has been chairman of the company since 1999 and served five years as its chief executive... Mr. Ford has been Detroit's most vocal environmentalist since becoming the first family member to run Ford since his uncle, Henry Ford II. Even when Ford was living off profits from its big sport utility vehicles, he was pushing to take the company in a greener direction. Ford was the first automaker to bring to market a hybrid version of an S.U.V., the Ford Escape, and it is introducing a new line of Ecoboost engines next year that will cut fuel consumption by up to 20 percent. The Ford family controls the automaker by virtue of its 70.85 million shares of Class B stock, which carry 40 percent voting rights for the entire company. But the family's wealth has taken a drastic hit as losses have mounted at Ford and its stock price has plunged. The family's Class B shares were worth $101 million at Friday's closing price of $1.43 a share, down 81 percent from a year ago when the shares had a value of $532 million."