Ford seeks help with revamping factories to compete with Import brand Transplants

[megeebee]

This applies to GM as well....


Harry Stoffer | |

Automotive News | 11:33 am, June 14, 2006




WASHINGTON -- Ford Motor Co. wants the federal government to give tax breaks to automakers to revamp factories to build advanced vehicles and components, Ford executive Mark Fields said Wednesday.

Fields, Ford's president of the Americas, endorsed incentives for rehabilitating factories during a speech to the U.S. Chamber of Commerce.

The UAW and automotive suppliers' main trade association back tax breaks for factory renovation. The idea has appeared in legislative proposals.

But Fields is the first senior executive of a U.S. automaker to express clear support for the proposal, say several industry officials who attended the speech.

Ford CEO Bill Ford included tax incentives for factory rehabilitation in an energy plan he outlined in Washington last November, but then he emphasized the need to help suppliers update facilities. Fields' remarks Wednesday focused on investments by automakers themselves.

Fields did not take reporters' questions after the event. He told the audience he planned to meet Wednesday with leaders of both parties in Congress.

Like other industry executives, Fields said the Big 3 do not seek a government bailout. But the companies want government to adopt policies they say will help them compete with import-brand automakers, he said.

That agenda includes action on health care costs -- although the Big 3 have offered few details -- and government incentives aimed at getting more E85 pumps installed at filling stations.



http://www.autonews.com/apps/pbcs.dl...plate=printart

[civilzues]

I was just at a presentation by the Michigan Governor Jennifer Granholm and she made comments that this would not happen because of the current administration, to many loops holes to get caught in but what I do not get is that they (the government) is willing to help the airlines, but a BIGGER INDUSTRY that employs a vast majority of the nation-they turn a blind eye too? I DO NOT GET IT!

[VivienM]

Originally Posted by civilzues

I was just at a presentation by the Michigan Governor Jennifer Granholm and she made comments that this would not happen because of the current administration, to many loops holes to get caught in but what I do not get is that they (the government) is willing to help the airlines, but a BIGGER INDUSTRY that employs a vast majority of the nation-they turn a blind eye too? I DO NOT GET IT!

Look at the political geography.

Foreign automakers have invested big $$$$$$$$$$$$$$$ in facilities in red states. (Ohio, Kentucky, Mississippi, South Carolina, Alabama, Texas, etc)

GM/F*rd/DCX's manufacturing base is in Michigan and Ontario... and other blue states. Sure, GM has a few red state plants, but not that much...

Where do you think the loyalties of the GOP are going to lie?

(Let's not forget the fact that there is going to be zero sympathy for UAW issues from the current crowd in DC)

[heel2toe]

Doesn't Trent Lott drive a Nissan Titan? I can see his justification -- the Canton plant was a big deal in Mississippi -- but it defintely underlines the lack of sympathy coming from Washington.

[civilzues]

what ever it is, its BS! fix our problems first, then "help" others. but the tax credit is a great idea!! U fix what "makes you unable to compete" then you are back in the game, making the economy work..

w/e happens needs to happen. Michigan is losing jobs left and right and I do NOT personally blame any party for not helping or whatever. come together and FIX it

[redimpss5]

WOW, American cars become a global competitor, and now they cry wolf to pay the CEO's more money!

[mobyss]

Originally Posted by VivienM

Look at the political geography.

Foreign automakers have invested big $$$$$$$$$$$$$$$ in facilities in red states. (Ohio, Kentucky, Mississippi, South Carolina, Alabama, Texas, etc)

GM/F*rd/DCX's manufacturing base is in Michigan and Ontario... and other blue states. Sure, GM has a few red state plants, but not that much...

Where do you think the loyalties of the GOP are going to lie?

(Let's not forget the fact that there is going to be zero sympathy for UAW issues from the current crowd in DC)

Uhhh, what's wrong with any political party helping their constituents over their political "enemies"?

Do you really think the Democrats wouldn't help New York, Boston, and San Francisco over Atlanta, Phoenix, or Dallas? Just look closely at 8 years of Clinton funding priorities and it becomes obvious who they "cared" about.

If GM and Ford really want to compete with transplants, maybe they need to follow the trend and build new, high-tech efficient plants in "red states" where unionism and liberal philosophy aren't so ingrained.

Funny though how Ford wants taxpayer money to "help the US auto industry compete", at the same time they are investing 9.2 BILLION in Mexico. Really looking out for the US, right Billy?

[VivienM]

Originally Posted by mobyss

Uhhh, what's wrong with any political party helping their constituents over their political "enemies"?

It's just sad that "helping constituents" now implies helping foreign companies destroy your country's industry.

It's so short-term-focused, too... because the instant GM and F*rd go out of business and there is no domestic auto industry, the foreign plants are so closing down. The only point to building a plant in the US, as opposed to, say, Mexico (if you want the NAFTA treatment) is to gain political support so GM/F*rd/etc can't successfully lobby against your interests. Once GM and F*rd are dead... guess what, it's either Mexican Toyotas or walking. Most politicians aren't going to make their constituents walk, so... Mexican Toyotas it is.

Originally Posted by mobyss

Do you really think the Democrats wouldn't help New York, Boston, and San Francisco over Atlanta, Phoenix, or Dallas? Just look closely at 8 years of Clinton funding priorities and it becomes obvious who they "cared" about.

They didn't care about the auto industry either, though... well... I suppose they did turn a blind eye to the SUV boom, so in a way they did.

Originally Posted by mobyss

If GM and Ford really want to compete with transplants, maybe they need to follow the trend and build new, high-tech efficient plants in "red states" where unionism and liberal philosophy aren't so ingrained.

Or build them in Canada, where the government pays the health care bill

Besides, how does your solution do the SLIGHTEST thing about the real UAW problem, namely the retirees? I know that most conservatives would happily sell out their parents for a tax cut, but...

[timman]

Originally Posted by mobyss

Uhhh, what's wrong with any political party helping their constituents over their political "enemies"?

Do you really think the Democrats wouldn't help New York, Boston, and San Francisco over Atlanta, Phoenix, or Dallas? Just look closely at 8 years of Clinton funding priorities and it becomes obvious who they "cared" about.

If GM and Ford really want to compete with transplants, maybe they need to follow the trend and build new, high-tech efficient plants in "red states" where unionism and liberal philosophy aren't so ingrained.

Funny though how Ford wants taxpayer money to "help the US auto industry compete", at the same time they are investing 9.2 BILLION in Mexico. Really looking out for the US, right Billy?

Perhaps here is the crux of our political situation...all political parties are in the battle of putting the other out of office and very little importance is put into what is right for the country as a whole. And I don't mean "big corporate America" as a whole.
Clinton(democrat)...NAFTA...Bush(republican)CAFTA. ..US auto industry workers...SHAFTA!!!

[mobyss]

Yeah, I agree that neither Democrats or Republicans care about the long-term health of the US, but for the UAW and Jennifer Granholm to now expect Bush to come to their rescue, after 6 years of saying "Bush is a miserable failure, blah, blah, blah" - for what - so they can give more money to the Ted Kennedy reelection fund? I'm not a big fan of Bush, but you can't expect him to bend over for his political "enemies" now.

The UAW needs to cut the umbilical from the Democratic party, THEN maybe they can present themselves on an even footing to ALL politicians. Right now, the UAW and Michigan in general are pure liberal Democrat political fundraisers - whether they know it or not.

As far as retirees - everyone has to think ahead and plan for the future - what makes UAW retirees somehow better or more important than other retirees from other industries? Pensions and Social Security will have to be reformed on a whole - but no union worker should expect to get more or better treatment than anyone else - despite what a pandering Democratic politician tells them.

I think Michigan will be better off once they dump the Canadian Trash.

[Bravada]

Mexican Toyotas or walking

Toyota is one of the few big brands in America that does not have a factory in Mexico. Actually, they only started selling cars in Mexico like two years ago. Most of their American manufacturing capacity is in the US, plus there is the TMMC in Ontario. So, it's rather US Toyotas or walking (unless you want a Corolla or Matrix).

[VivienM]

Originally Posted by Bravada

Toyota is one of the few big brands in America that does not have a factory in Mexico. Actually, they only started selling cars in Mexico like two years ago. Most of their American manufacturing capacity is in the US, plus there is the TMMC in Ontario. So, it's rather US Toyotas or walking (unless you want a Corolla or Matrix).

I think you misunderstood what I said...

I wasn't talking about the situation now. I mean the situation once they've successfully put F*rd and GM out of business and thus have no political need for plants in the US or Canada. (Don't forget: they built the North American plants in the first place because in the 80s, American/Canadian politicians WERE listening to the Big Three)

At that point, once there is no longer a danger of politicians doing subtle pro-GM/F*rd things, why would Toyota continue to keep US/Canadian plants? Either move production back to Japan, or, if they want cheap labour and lower transportation costs, build in Mexico. It's not like the politicians will be able to bring GM or F*rd back from the dead at that point...