Wagoner: Feds must do more

[nadepalma]

Source: http://www.detnews.com/apps/pbcs.dll...0340/1121/AUTO

Wagoner: Feds must do more:
GM CEO says Washington isn't showing leadership on crucial business issues like health care, energy policy.
David Shepardson / Detroit News Washington Bureau


"They've just taken a complete pass on doing something about the health care situation," says GM CEO and Chairman Rick Wagoner about government officials.

TRAVERSE CITY -- General Motors Corp. Chairman and CEO Rick Wagoner sharply criticized government officials Thursday for failing to show leadership on crucial issues such as health care and energy.

"Some of the things that we all believe are necessary to ensure the continued strength of the (manufacturing) sector, which I think is just vital ... we just don't see the leadership," said Wagoner, speaking at the auto industry's Management Briefing Seminars in Traverse City.

Wagoner's comments followed similar sentiments expressed a day earlier in Traverse City by Mark Fields, Ford Motor Co.'s president of the Americas.

Wagoner and the CEOs of Ford and DaimlerChrysler AG's Chrysler Group have been asking for a sit-down with President Bush for months, but the meeting has been postponed at least twice.

Last month, Wagoner appeared on Capitol Hill asking Congress for a number of reforms to help businesses cope with runaway health care costs.

"They've just taken a complete pass on doing something about the health care situation," Wagoner said Thursday. "It's driving jobs out of the country."

On another topic, Wagoner also said GM has reduced its forecast for total U.S. auto sales to 17 million in 2006, down from 17.5 million in 2005. That number includes heavy trucks.

"If somebody would have told all of us that oil prices would be as high as they are today and auto sales in the U.S. would be staying and running at the rate they have, I think we'd probably have said, 'Wow that's a pretty a robust market,' " he said. "We're not overly negative, but certainly we have to be concerned."

He also said the company continues to make progress on talks with Delphi Corp., GM's former parts division. Delphi, with the financial assistance of GM, is trying to work out an agreement with United Auto Workers to lower wages and benefit levels that would avoid a potentially crippling strike.

Delphi and UAW are due in bankruptcy court today to resume hearings on Delphi's request to void union labor contracts.

Wagoner also said Thursday that GM is scaling back its production of newly redesigned large SUVs to make sure dealer inventories don't get too high. GM had planned to run plants on overtime for the rest of the year, which won't be necessary, he said.

But it was the normally reserved Wagoner's criticism of federal leaders that had auto industry insiders buzzing Thursday at the auto confab.

GM is the largest provider of health care in the United States, spending $5.3 billion to cover 1.1 million people in 2005. The company expects its health care costs to rise to $7.4 billion by 2009.

U.S. Rep. John Dingell, D-Dearborn, said the auto industry has been frustrated by a lack of action.

"Let's be honest -- this administration done nothing for the auto industry except to whine that they want a bailout when the industry doesn't want a bailout," said Dingell, adding that health care costs are becoming untenable for the many large businesses. "It's breaking industries all over the country."

Dingell noted that in next year's contract talks with the UAW, health care is sure to come up in what will be "a terrifying set of negotiations," Dingell said. UAW President Ron Gettlefinger is going to have "a hell of a time between a rock and a hard place" as the automakers demand more health care and other concessions.

Wagoner, echoing Fields comments Wednesday, said manufacturing isn't as valued in the United States as it is in some other countries.

"There is somewhat of an under appreciation of the importance of the manufacturing sector in the U.S.," he said. Fields made the same point in his appearance in Traverse City.

"In Asia, the approach is vastly different. Governments and consumers see the auto industry as strategically important, vital to national interests and deserving of full support at every level of their national economies. Asian nations value their established automakers, and they root them on to success," Fields said. Wednesday in Traverse City. Wagoner also said the federal government hadn't thoughtfully addressed the nation's energy issues.

"Energy policy is another good example: By simply taking a pass and say buy whatever's cheap, we have what we have today," Wagoner said. "If we want to have a policy which doesn't rely exclusively on imported oil, we're going to have do something other than every day toss up the ball and say, 'OK, go for the cheapest stuff.' There's got to be a more thoughtful policy than that."

Toyota Motor Manufacturing President Gary Convis, offered comments in support of Wagoner.

"A good energy policy is very important to the future of our kids," he said. "The government has to take a very proactive long-term role in that. There's a limited amount of resources and it doesn't take a brain surgeon to figure out that we have to do something different."

The Bush administration has sought authority to raise fuel economy requirements for passenger cars. The Big Three have strongly opposed efforts by some in Congress to mandate a specific fuel economy requirement.

Many observers agree that bills to reform fuel economy for passenger cars, which have remained at the same level since the mid-1980s, aren't going anywhere this year.

U.S. Sen. Debbie Stabenow, D-Lansing., said in an interview that she agreed with Wagoner's comments.

"I think I know who Rick was talking about," Stabenow said, blaming the Republicans. "The White House and Congress have not stepped up to support the auto industry and manufacturing in this country."

She's offered a series of bills to help the industry with its health care costs, especially catastrophic health care costs, which account for as much as a quarter of the $10 billion the Big Three spent on health care in 2005.

[paul3230]

You know when they through Toyota's comments in about something and they all agree it MUST be serious

[t-rex]

Amen. I'm sure I'm not the only one out here who believes Detroit's spiraling "legacy costs" are directly related to out-of-control health care costs. I just found it odd that hardly nobody ever mentions it......

[asim]

So are we going to play the blame game. Detroit: "Feds should do more." Washington: "Carmakers should do more."

Then they are gonna blame it on us.

[tgagneguam]

I agree that industry needs help from the federal executive and legislative branches in the form of an energy policy that's long overdue and in terms of support for healthcare, though I'm definitely not specifically for national healthcare. National healthcare simply shifts the burden from industry to the taxpayer - it doesn't necessarily mean that there's any savings. And I'm not really interested in subsidizing US industry so GM can be around for a few years longer. My limits as a fan of the General clearly would be exceeded in that case.

Rather, the US's splintered healthcare system needs to be integrated to reduce overlapping costs/redundancies (e.g., an intergrated electronic medical records system that would streamline information flow, reduce redundant tests, reduce medical errors, to name three of the many benefits), and the medical model by which healthcare is delivered may need to be changed. As one example, the Dartmouth Hitchcock Medical Center has been piloting novel approaches to organizing teams of healthcare providers that reduces redundancy, increases speed of care, reduces costs(!), and increases safety for patients. Imagine that!

And I do think tort reform is long overdue.

[Black04GTO]

You've got to be kidding me...the UAW rank and file has always been a HUGE supporter of anything associated with the Democratic Party...Does GM really think the Republicans are going to bail them out? The Republicans don't owe them squat...welcome to politics.

[Old Dood]

This is why I cannot understand why Politics are not allowed in forums. Everything is tied to Politics one way or another.

[Hoosier Red]

Originally Posted by tgagneguam

I agree that industry needs help from the federal executive and legislative branches in the form of an energy policy that's long overdue and in terms of support for healthcare, though I'm definitely not specifically for national healthcare. National healthcare simply shifts the burden from industry to the taxpayer - it doesn't necessarily mean that there's any savings. And I'm not really interested in subsidizing US industry so GM can be around for a few years longer. My limits as a fan of the General clearly would be exceeded in that case.

Rather, the US's splintered healthcare system needs to be integrated to reduce overlapping costs/redundancies (e.g., an intergrated electronic medical records system that would streamline information flow, reduce redundant tests, reduce medical errors, to name three of the many benefits), and the medical model by which healthcare is delivered may need to be changed. As one example, the Dartmouth Hitchcock Medical Center has been piloting novel approaches to organizing teams of healthcare providers that reduces redundancy, increases speed of care, reduces costs(!), and increases safety for patients. Imagine that!

And I do think tort reform is long overdue.

Hear, hear......there's some good stuff in this post!! Addressing how information flows through the medical system would be dramatic in improving efficiency. Anyone who says tort reform wouldn't make a difference has an agenda. However, at this point, we've raised more than a generation of physicians practicing in fear of the "lottery judgement." You can have a $1 million judgement for a "bad outcome" that has nothing to do with whether you practiced good medicine. A couple of those and you're going to have a tough time feeding your family. Do we order more tests b/c of it? Yes we do! Would it suddenly change if tort reform becomes reality? I don't know.....the threat of lawsuit hangs very heavy.

[VGT]

How many times does it have to be said. This is NOT the Government's responsibilty. It never has been, and never should be. People just don't understand how things work and how things are set up. They hear a catchy phrase, think it's truth and forget about reality.

There is a reason this country is so successful in such a short period of time, and it's not because the government is supposed to do everything for everyone. The less they do, the better off you are.

[tgagneguam]

Originally Posted by Hoosier Red

...Do we order more tests b/c of it? Yes we do! Would it suddenly change if tort reform becomes reality? I don't know.....the threat of lawsuit hangs very heavy.

Right, and the standard of care reflects that, with more [expensive, sometimes unnecessary] tests being ordered to make diagnoses rather than using sound clinical judgment informed by a thorough history and physical examination. Old school surgeons, for example, would tell those in training that diagnostic tests should be used to confirm the physician's clinical impressions, not replace it.

Patients need to take more accountability for themselves, and services need to be provided that encourage primary, preventitive care. What costs more: annual examinations by a primary care physician during which exercise and general good health is encouraged so that patients eat healthy diets and engage in regular physical exercise, or is it less expensive to treat the 55 year old, sedentary, overweight gentleman who presents to an area ED with crushing, radiating chest pain and shortness of breath?

Anyone on this site who has reasonable healthcare should be in touch with a primary care physician every year, no matter what your age. Actually, you should be willing to be out-of-pocket for such services. Pretty much everyone here has modifiable risk factors for chronic, debilitating illness that can often be prevented with some effort and vigilance. Your longterm quality of life will reflect your efforts, too!

(Of course, I say the above in a not-as-medical advice fashion... Just my thoughts)

[motorman]

something you do not want to hear "i am from the goverment and i am here to help you"

[pinyon]

Originally Posted by VGT

How many times does it have to be said. This is NOT the Government's responsibilty. It never has been, and never should be. People just don't understand how things work and how things are set up. They hear a catchy phrase, think it's truth and forget about reality.

There is a reason this country is so successful in such a short period of time, and it's not because the government is supposed to do everything for everyone. The less they do, the better off you are.

While this is highly up for debate I think it's safe to say the part about why we've been successful is at least partly correct. The problem is the global market. We just can't play by the old rules when the rest of the world either has cheaper labor or national health care.

[1999 White C5 Coupe]

I wish the "Feds" would have done something regarding the poor quality and reliability of the last several new GM cars I purchased.

For years, GM officials failed to show leadership on this serious issue. The poor quality cost consumers big $$$$ and caused GM to lose customers. Perhaps if GM officials would have managed the company properly, it would not be such bad shape now.

IF all else fails - blame the government.

[DuSpinnst]

Hate to say it but our government is a worthless pile of trash. Each party refuses to do things to SPITE the other party.

No one in Washington cares about the good of the American people, all they care about is their party being in power and themselves living the good life.

Until the political system has a serious overhaul (or people STOP voting in the same idiots year after year) nothing in this country will change.

Career Politicians should be dragged out into the street and openly flogged.

[A Bum In A Bus]

This is the most worthless administration ever to occupy the white house or the outhouse for that matter, and this is coming from a Southern Republican. Pitiful, just pitiful, there is not enough brains under the roof of the white house to fill a thimble. For those of you that don't know how big a thimble is, well it fits on the end of your index finger.