Why would Ford motors be financially okay unless GM or Chrysler go under?

They share the same suppliers in the US. If 1 goes bankrupt more suppliers will go bankrupt. No suppliers = no parts.

Toyota, Honda, Nissan, Hyundai, Mercedes, and BMW also use the same suppliers for their North American plants. It would hurt everybody including them.

In the long term, yes it would probably benefit Ford if GM or Chrysler went away. That is if Ford could survive to face the long term. There are many things that would cause Fords sells to plummet. some I've heard else where some I've just thought of and I don't know how realistic they are, but here is my list.

IF GM or Chrysler fails and this prompts the credit rating agencies to further discount fords credit rating, this makes it more expensive for ford to borrow.

If one of those companies fails, the quarter (possibly quarters)in which they're liquidated there is likely to be massive influx if discounted cars on the market. As slow as car sells have been, do you think Ford could survive a hugely discounted competitor if only for the short term?

If one of the american companies fails, it will likely indicate the others might fail, which will decrease the value of the product in the eyes of the consumer, and slowing sells even further.

By the same token, it will make it harder for consumers to get bank loans from to purchase a product that is deemed less valueable if one of the other fail.

Those 3 have assume GM or Chrysler liquidate. I think it is more likely they seek credit protection and restructuring. GM or Chrysler are not going to just go away. At the very least their assets will be sold. If GM enters bankruptcy protection, and is able to void the union contracts, and renegotiate contracts on much better terms, how does Ford compete with that?

When that much money is at stake, competitors are everywhere. If GM and Chrysler go under, Toyota or someone else will buy them. Ford already gave up their shares of Mazda. Ford's negotiation abilities are lacking. Even Washington doesn't want to talk to them anymore. The bailout is contingent on a feasible future plan. They aren't even trying to come up with one. Business is business. Why should the taxpayer bail out a private company with no plans to become self supporting. I have trouble believing Ford needs a bailout. A Govt handout can not make a company work. Fix the problem or give up. Let someone else make it work. Be good, get good, or quit.

The problem is complex:

1) the Big Three often use the same suppliers for things like car paint, steel, auto glass, tires, copper tubing and wiring. If GM and Chrysler went under, these suppliers would begin to go under, one by one, and Ford would have to scramble to replace the parts and raw materials they make.

Already, Dupont (which supplies the Big Three with auto paint) is idling plants and laying off workers.

Less volume in the short run means that Ford's suppliers will have to charge them more for the parts that go into Ford cars, which means Fords will cost more, which means they'll sell even fewer of them, which means... Ford will follow the other two automakers down the crapper.

2) the people who used to work for these companies are no longer going to buy cars, nor are their barbers, bag boys, lawn care people, orthodontists, so on, and so on, and scooby dooby dooby. Ford used to sell cars to these guys.

3) The ripple effect in this case is amplified by anxiety and a national press always ready to proclaim that an ant hill is Mount Everest; this tightens up the credit market not just for GM and Chrysler but Ford as well. As investors have to cash in their securities, there will definitely be a run on Ford stock, which will in turn reduce the value of Ford's holdings and make it even harder for Ford to meet payrolls, pay creditors, etc.

4) If it's any consolation, even the Japanese automakers are worried about this problem. There are so many die-hard "buy American" car buyers out there that if sales have fallen low enough to endanger the Big Three, even larger market share in a dwindling American and world car market is still bad news for Japan (apart from which, China and South Korea are cutting into the Japanese market share as well).

Many of the auto manufacturers share common suppliers. Some of those suppliers could go bankrupt if any of the Big-3 actually fail. That could have a knock-on affect for the rest of the industry.

They also share a lot of R&D and a surprising amount of common parts. The new 6-speed automatics offered in some Fords and GMs are a shared design.

Because the discount they receive on parts would be slashed as the demand for such parts would be less with the loss of the other two and some part suppliers could just not stay in business which would lead to less competition and higher prices which would cause Ford to not afford to be able to build cars

I have a follow up to this question:

If the failure of GM and Chrysler would cause Ford to fail, why wouldn't it cause Toyota, Honda, VW, BMW, and all the other American made foreign car companies to go under, too?

BTW - I own a Ford and a GM, and I know exactly why these companies are in trouble. Their cars suck.

the final they ever equipped replaced into for ford the 429 great cobra jet engine ,for Chrysler the 426 hemi or the 440 manufacturing engine,and for Chevy the 427 rat motor or the 454 vast block,all have been large engines,to me that replaced into their ultimate ones,and quickest additionally,good success.

Nothing is fixed until they can outsell Honda and Toyota. Bailouts and mergers are only temporary band-aids.

All three are teaming up to grub money from us.

Must be a union worker here.