Ford Reaps Benefits Outside Ch. 11

General Motors Co. and Chrysler Group LLC may have cleaner balance sheets than Ford Motor Co., but the advantages of not having gone through bankruptcy outweigh that disadvantage, says Ford Chief Financial Officer Lewis Booth.

“In the last few months, there is enough data to suggest we've improved customer consideration of the Ford brand because we are in a different position from our competition,” he says.

“We have goodwill from customers who want to buy Fords because we haven't taken (taxpayer) money.”

Booth says Ford was able to keep its focus on product-cycle and restructuring efforts, while Detroit rivals were spending massive efforts on Chapter 11.

Debt is an issue for the CFO, but Ford enjoys a net benefit of not going bankrupt, “without the violent disruption that GM and Chrysler had,” he says.

Nevertheless, President Obama handled the GM and Chrysler challenge better than the U.K. did several decades ago with British Leyland, where Booth started his career.

“The thing the U.S. government did that was really brave was being decisive, then saying — and I believe it — that they will get out. That didn't happen at British Leyland.”