Chrysler Group President and CEO Tom LaSorda, Ford CEO Alan Mulally, and GM Chairman Rick Wagoner recently met with US President George Bush to brief him on some of the challenges facing the American auto industry.
The following is a summary of the issues the Big Three CEO's brought to Bush's attention, as taken from a joint statement issued after the meeting.
Energy Security
The automakers support the President's call for development of renewable fuels in order to lessen the nation's dependence on imported oil. They
indicated that they have the ability to equip half of their production with flex-fuel or bio-diesel ready engines by 2012. GM, Ford and Chrysler stressed the importance of continued incentives to entice the public to embrace such machines.
Competitiveness
Bush heard that the carmakers have great concern that the well-paying jobs and huge investments made possible by manufacturing are threatened by overseas competition. They attribute the threat to an un-level playing field, with principle foreign competitors benefiting immensely from subsidization of health care costs in their respective countries, for instance. Fiscal and trade policies are also said to keep local currencies weak, making import of U.S. products less attractive.
Cost of Materials
The meeting brought up the issue of competitive protection for the American Steel industry. The carmakers claim that because of massive consolidation, domestic steel companies are now restructured, carry lower costs, benefiting from import protection, and are once again very profitable. Since the protection remains, carmakers are paying higher costs for steel and supply disturbances, and Bush was asked to realize that the protection is no longer needed.
Mulally, LaSorda and Wagoner concluded by indicating that they were pleased to have the chance to meet with Bush, while they will do their part to move forward on solutions intended to maintain America's long-standing leadership in innovation and technology.
The following is a summary of the issues the Big Three CEO's brought to Bush's attention, as taken from a joint statement issued after the meeting.
Energy Security
The automakers support the President's call for development of renewable fuels in order to lessen the nation's dependence on imported oil. They
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| (Photo: DaimlerChrysler) |
Competitiveness
Bush heard that the carmakers have great concern that the well-paying jobs and huge investments made possible by manufacturing are threatened by overseas competition. They attribute the threat to an un-level playing field, with principle foreign competitors benefiting immensely from subsidization of health care costs in their respective countries, for instance. Fiscal and trade policies are also said to keep local currencies weak, making import of U.S. products less attractive.
Cost of Materials
The meeting brought up the issue of competitive protection for the American Steel industry. The carmakers claim that because of massive consolidation, domestic steel companies are now restructured, carry lower costs, benefiting from import protection, and are once again very profitable. Since the protection remains, carmakers are paying higher costs for steel and supply disturbances, and Bush was asked to realize that the protection is no longer needed.
Mulally, LaSorda and Wagoner concluded by indicating that they were pleased to have the chance to meet with Bush, while they will do their part to move forward on solutions intended to maintain America's long-standing leadership in innovation and technology.