Automakers to Dems: “Work with us, guys”

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Manufacturing News, Source : The Manufacturer US
Published : 27 Jun 2007 14:46

Automotives: Healthcare, trade balance, energy policy key competitive priorities

June 6 saw a rather low-profile “Manufacturing Summit” organized by Senator Debbie Stabenow (D-MI). But the Big Three automakers were on hand, testifying strongly about their requirements for competitiveness.

Stabenow, chair of the Democratic Steering and Outreach Committee, chaired the meeting, with Senate Majority Leader Harry Reid (D-NV), Senator Carl Levin (D-MI), and other members of the Senate Democratic Caucus on hand to discuss the concerns of domestic manufacturers. No presidential candidates (e.g., Clinton, Obama) were in attendance.

Tom Lasorda, president and CEO of the Chrysler Group, emphasized his belief that healthcare costs are putting the US auto industry at a disadvantage.

Lasorda pointed out that most industrialized nations design policies to support their core domestic industries, which use that government support as a springboard to compete globally. “Our history as a free and open society tends to push us to the other extreme, in that we are hesitant to promote policies that help our industries. In fact, we tend to spend more time attempting to over-regulate.”

Lasorda went on to compare the auto industry with the now-extinct US steel industry, including large numbers of bankruptcy filings by auto suppliers and steel companies, mass layoffs, and retiree costs that caused more than 200,000 retired steelworkers to lose healthcare benefits.

Ford CEO Alan Mulally focused on trade, saying, “In recent years, there seems to have been willingness in trade negotiations to overlook or even trade off manufacturing’s interests for those of other sectors that are perceived as either sacred cows or the new frontier.”

In the current Doha Round negotiations at the World Trade Organization in Geneva, Mulally observed, trade in manufactured goods has barely been addressed, despite the fact that manufactured goods comprise 70 percent of total US exports. “It is for this reason that I would like to talk briefly about what I would call a Manufacturing Focused Trade Strategy for America—a much-needed re-emphasis on manufacturing as a cornerstone of American trade policy.”

General Motors CEO Rick Wagoner urged the Democrats to work with automakers on energy and emissions standards, which they see as too stringent and unachievable. Wagoner pointed out that fuel economy programs did not solve gasoline consumption or oil import crises, and instead urged developing advanced batteries and alternative fuels for hybrids and electric vehicles.

“Our only hope is that the policies we pursue in the next 10, 20, 30 years, I hope that we end up with better results,” said Wagoner, referring to past initiatives.

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