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Having declined federal loans, Ford Motor Co. has been watching the car industry's bailout drama from the sidelines. But now, company officials worry that a bankruptcy filing by a cross-town rival could severely disrupt Ford's operations.
A bankruptcy reorganization by either General Motors Corp. or Chrysler LLC -- as suggested by President Barack Obama this week -- could damage the networks of suppliers and dealers shared by Detroit's three auto makers, throwing uncertainty into Ford's parts deliveries and its retail operation.
Moreover, Ford officials are concerned that bankruptcy could allow GM or Chrysler to restructure more fundamentally and exact deeper concessions from unions and bondholders. That could leave a rival in better competitive shape than Ford, unless Ford can gain the same concessions...
[Yet another, as if needed, reason government should not involve itself in private business: Ford now stands to be punished for their (comparative) good behavior. Governments can only referee business - they can't be both that and a player in the game.]
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