We live in a world where wisdom can be punished and where foolishness can be rewarded

Paul Ingrassia looks at Ford's strength versus the other auto companies' weakness:

The 2010 Taurus, which debuts next month, is a brand new start with sharp styling and the same $25,995 base price as the old, lackluster model. For more money you can add high-tech gadgetry such as forward-looking radar, adaptive cruise control, and a collision-warning system that applies the brakes when you get too close to the car in front of you. Together, these gizmos will allow you to drive from Detroit to Chicago without hitting either the brake or the accelerator. (I wouldn't suggest trying it, however.)

Ford's new Fusion Hybrid, meanwhile, gets 41 miles to the gallon in the city, versus 33 mpg for the Toyota Camry hybrid (with a similar price tag). The difference comes from lots of little things. Ford narrowed the slots on the wheel covers and changed the design of the fog lights, for example, to reduce aerodynamic drag.

Ford announced last week that it's reconfiguring a truck plant in Wayne, Mich., to build the new Focus compact. And a year from now the high-mileage subcompact Fiesta, engineered in Europe, will hit these shores. The Fiesta trails the Honda Civic and the Toyota Yaris in its time of entry to the U.S. market, but the vehicle's sleek styling will make it the best-dressed girl at the dance.

All this begs the question: How did the company develop all these new cars while losing so much money in recent years? The simple answer is that it borrowed billions from private lenders.

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Last week, GM reported a $6 billion loss for the first quarter. The company wants to wipe away 90% of its $27 billion in unsecured debt as part of its path to viability. But to do that it will almost certainly have to follow Chrysler into bankruptcy court. That will be the cleanest and quickest way for GM to get relief from obligations that it can't afford to meet. Beyond this, GMAC's status as a bank holding company qualifies it for government assistance that Ford's lending arm, Ford Motor Credit, can't get.

You can see where this leaves us. Ford has about $26 billion in automotive debt -- about the same as GM's $27 billion. Ford's debt is secured by its assets. And secured lenders must be repaid -- unless they happen to be Chrysler lenders and get clipped by a company bankruptcy plan that's backed by President Obama.

So Ford is like a homeowner who planned prudently and can pay his mortgage, while his spendthrift neighbors get their mortgage reduced by some new federal program.

Ford executives are probably fretting about this, but there isn't much that can be done. They already have exchanged some of their debt for equity, and might do more of that.