Wednesday, November 15, 2006

US car giants lobby White House

US car firms have urged President Bush to help them improve their global competitiveness, while insisting they do not want a government bailout.
Mr Bush met bosses from DaimlerChrysler Ford and GM, all struggling against Asian rivals, to discuss concerns over growing imports and health costs.
The companies, which spend more on health costs than on steel, want action to combat the weak Japanese yen.
This has made Japanese vehicles more attractive than US models, they say.
'Difficult decisions'
"We told the president that we are very willing to make difficult decisions to transform our businesses to compete successfully, but we are not in a position to counter the effects of an excessively weak yen," the firms said in a joint statement.
The three firms have seen their US sales eroded by the success of Japanese companies such as Toyota.
We really believe that the action starts with us
Alan Mulally, Ford chief executive
Foreign manufacturers have been quicker to react to growing consumer demand for more energy efficient vehicles.
In contrast, GM and Ford have been over-reliant on gas guzzling sports utility vehicles (SUVs)
US car firms have been hit by the high cost of paying for the health care costs of their retired workforce, under agreements with the trade unions negotiated many years before.
'No bailout'
Both GM and Ford are undergoing significant restructuring plans, involving job reductions and plant closures, in a bid to save costs, after reporting massive losses.
This has led to speculation that they could seek financial assistance from the government to cover restructuring costs.
In 1979 Congress intervened to help protect Chrysler by providing an interest free loan at the height of the oil crisis.
But Ford chief executive Alan Mulally said the firms were seeking fairer trading conditions rather than financial handouts.
"The question was asked whether we are interested in a bailout and, absolutely not, because we really believe that the action starts with us," he told reporters.

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