Apr 24, 2006
Ford Motor Co. is asking U.S. lawmakers to change bankruptcy law so that it can recover its equipment and inventory held by supplier companies, if those companies file for bankruptcy.
Let’s get this straight. How did Ford equipment get into these companies? Did the companies steal it? Did it grow legs and walk?
No – it’s merely part of the fiction about “separate” companies. When big companies like Ford and GM spin off companies, intending to cut workers’ wages and benefits, they are stuck with the unpleasant fact that most of the “spun off” equipment was in fact paid for by the parent company and integrated in that company’s original production.
Caught in a trap of their own making, Ford has deployed its lawyers – trying to have its cake and eat it, too.