According to an article in the Dallas Morning News, Ford has experienced a 10.7 percent drop in sales in June; but they call the decline “steady progress” considering the overall state of the auto industry.

The article said:

“We’re making steady progress,” Jim Farley, the company’s group vice president of marketing, said in a statement. “We remain grounded, however, given challenging industry and economic conditions.”

Ford is the only U.S. automaker to avoid bankruptcy (so far) and the only one who has not accepted government bail out funds. But with both of its competitors (Chrysler and GM) emerging from bankruptcy free from burdensome debt, will Ford be able to compete? Chapter 11 bankruptcy gives companies advantages such as shedding high interest debt, burdensome labor contracts, pensions and toxic assets. Without bankruptcy a business cannot easily negotiate concessions from labor groups or creditors. And once their competitors shed many debt payments, profits automatically increase freeing up capital for investments that will provide long-term growth. It’s not yet clear how Ford will fair without bankruptcy in the long-term; but if their sales don’t improve significantly, bankruptcy may be an option they need to consider.

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