A few years ago Ford was the epitome of what was wrong with American car makers. They were making bad cars that weren’t reliable or original. Luckily, they brought on Alan Mullaly to run the company.
When he came to the company in late 2007, he did something almost everyone criticized – he mortgaged all of the company’s assets to bring in about $30 billion in cash. In a massive stroke of luck, the loan came in just months before the worldwide financial collapse and tightening of credit.
This round of credit, coupled with improved engineering and design kept Ford afloat in the worst car buying market in 80 years and kept them from having to take government handouts like GM and Chrysler.