The US auto industry has yet to recover - and this week manufacturer Chrysler is expected to announce Chapter 11 bankruptcy. General Motors isn’t far behind. Both companies benefited from substantial government loans. Only Ford Motor Company continued its drive without assistance.

Ford is not out of the woods. Last week the company announced a quarterly loss of US$1.4 billion. Despite the loss it is a better result than anticipated - and exceeds the previous quarter loss of US$24.8 billion.

GM and Chrysler have taken government money to supplement their own losses. The taxpayer loans have kept the factories open and paid for daily expenses. While Ford has been losing money, it’s earlier actions and savings mean it’s in the best shape to continue - without assistance.

At first I thought Ford’s refusal to accept government money would put it at a disadvantage. Why stand stoic when the handouts are thick and fast? Yet today Matthew Dolan of “The Wall Street Journal” tells that acceptance would have diluted the Ford family shareownings and jeapordised CEO Alan Mulally’s turnaround efforts. Ford remains the only US manufacturer not reliant on government handouts.

And in case US consumers didn’t realise this, Ford’s now using it to their competitive advantage by targeting Chrysler and GM customers. Who wants to buy a car from a bankrupt company? What if the dealer goes under? What does that mean for service - or resale value? Ford has ads saying its dealers are looking “forward to serving you for many years to come.”

Ford’s decision to turn away subsidies may prove to be its wisest decision in years. Just ask all the former GM and Chrysler customers now driving Fords.