So what has Ford been doing that set it apart from the other two of the big three in Detroit? They started acting like a company that sells cars and thinking ahead. It helps to have a couple of hardheaded members of the Ford family still involved with the company. It also helps to have Alan Mulally, who joined Ford as CEO in 2006 after helping Boeing overtake Airbus as the top commercial aircraft maker.

• Cut the number of Ford, Lincoln and Mercury dealerships 14% between 2005 and 2008.
• Jettisoned its Jaguar, Aston Martin and Land Rover brands in 2007.
• In 2008, when the getting was good, disposed of most of its stake in Mazda. GM, on the other hand, finds itself stuck with a litter of hard-to-sell legacy nameplates.
• In March, secured contract concessions from the United Auto Workers, which lowered its labor costs by $500 million per year and helped it shore up cash.
• Ford Credit resisted the temptation to dip into subprime mortgages and other troubled loans that have crippled GMAC, GM’s lending arm.
• Instead of breaking into mortgage lending when credit was easy a few years ago, Ford took advantage of the situation and mortgaged much of its asset base. The move allowed it to stockpile cash. And They Held On To The Cash. The company had $21 billion in cash at the end of the first quarter.

Savings, deal making, product choices, hoarding cash reserves and prudence have allowed Ford to avoid having to beg Uncle Sam for a bailout. But they are also taking steps on their own that may keep them in front.

Embracing the future.   On May 6, Ford announced plans to spend $550 million to retool a Wayne, Michigan, sport-utility vehicle factory to make small cars, including an electric version of the Focus model. Ford is not eschewing all financial relationships with the government. They are just wise in how they use existing programs. Low-interest U.S. loans to help build fuel-efficient vehicles may cover as much as $440 million of the cost.

Working with the workers.   And, on Tuesday, Ford flexed its financial muscles by raising $1.4 billion through the sale of 300 million shares to help fund its retiree health care trust. – Instead of letting the government give the union a huge chunk and control of the company in lieu of cash payments.

Staying Independent.   And that (staying away from Uncle Sam’s clutches) is attractive to customers and partners. Last month you read polls here that suggested that auto buyers were more likely to choose a car from a non-government run company. Well, those pesky polls can sometimes be right on target. Though they will be using stimulus money to help their customers buy into the program, Ford will be delivering electric vehicles to about a dozen utility companies for real-life field testing. Ford is not the only company making electric vehicles, but..

I would go on about how the existing Ford Focus gets 35 mph or how Ford listens to their customers, but then NQ would have to send them an advertising bill and that is not the story here. The story is Ford has been competing across the U.S. and abroad in the same economic environment as the others, yet found a way to remain independent.
 

True they may have trouble with supplies if the component manufacturers, who also make parts for GM and Chrysler, go out of business. But we can assume someone in Dearborn is thinking about that right now. GM and Chrysler may leave bankruptcy with lower costs and revitalized lineups from their $19.4 billion in U.S. cash infusions and restructuring, but Ford will likely be more nimble without a car czar committee governing market reaction and development modifications.

Ford ran in the red last year and is running in the red today. But at the annual shareholders meeting today the board announces that they are on track to be in the black by 2011. They will also discuss the fate of the Class B stock that gives the Ford family a 40% voice on the board. Directors including Executive Chairman Bill Ford and Edsel Ford II will urge no change there and I personally agree.