Ford asks government for help to modernize U.S. plants
Pitching Ford Motor's "Way Forward" program to the U.S. Chamber of Commerce "Competitiveness Forum" Wednesday, Ford's president of the Americas Mark Fields asked the federal government for a variety of support to "level the playing field" for domestic automakers in the U.S. market, including incentives for upgrading out-of-date factories. The United Auto Workers have already called for tax breaks for factory renovation and government support for health care, but Fields is the first auto industry exec to openly ask for help, saying, in effect, what's good for Ford (and General Motors, and Chrysler) is good for the U.S.A.
Fields and other auto industry executives maintain that they are not looking for a government bailout. Rather, they want government to adopt policies that will help them compete with foreign-based automakers. In this vein, Fields says that companies building new plants (read, Honda, Toyota, Kia et al) get lots of state and local government subsidies based on the new jobs created, but companies looking to refit old plants (Ford, General Motors, DaimlerChyrsler) don't get much help.
It's not clear why Fields thinks this is a federal issue, when factory support is typically a state and local government concern. Perhaps its just easier to lobby one government instead of fifty.
A complete webcast of Fields' speech is available at the Chamber's website, here.
[Source: Ford]
Reader Comments (Page 1 of 2)
Howard Kerr 3:50PM (6/14/2006)
"Perhaps, it's just easier to lobby one government instead of fifty."
NOOOO, unfortunately, the Big 2.5 have a long history of closing plants and the "transplants" (this includes BMW and M-B) have a shorter history in this country and it (so far) has not included plant closings. If a state thought ANY one of the 2.5 were going to bring jobs to their area, and the jobs were to last for more than a few years, there would be state subsidies galore. If Ford, or anyone, wants "help" updating their factories, I would be strongly tempted to say " not until after you stop building plants in Mexico." Afterall, not all of Ford's and GM's plants in Mexico were existing plants converted to car and truck production from something else.
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laserwizard 4:08PM (6/14/2006)
Sorry, Mr. Fields, the Constitution does not afford the Federal Government the authority or the power to do anything like he suggests.
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Jeff Banks 4:12PM (6/14/2006)
Most foreign automakers establish plants in non-Union states (the south). One of the laws automakers have to comply with is that you aren't allowed to move to a different state to break a Union (but you are allowed to outsource) which is why Ford and GM produce so much in Mexico these days.
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Shane 4:21PM (6/14/2006)
Sorry, Mr. Fields, the Constitution does not afford the Federal Government the authority or the power to do anything like he suggests.
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stbham 4:49PM (6/14/2006)
I wouldn't be caught driving a Ford product including their exotics. If they want to level the playing field, they need to look at their sorry products for the past 4 decades. Why should I go to work every day to subsidize something the free market would rather see go away?
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anahit 4:52PM (6/14/2006)
While I didn't listen to the speech, a blanket statement like "the Constitution does not afford the Federal Government the authority of power to do anything like he suggests" is overbroad and I consequently strike down the assertion.
The feds can do tons of things to allegedly help the domestic auto industry. Ever heard of the Commerce Clause? The rational basis test? Spending Power? The Tax Code?
Even if you were referring to the feds telling states to enact certain laws or procedures to help the domestic auto industry, that can still be legal despite the 10th Amendment. It's called a grant-in-aid.
Grants-in-aid made the states magically all agree on a 55 mph limit back in the day. The feds said, "Hey, states, we can't compel you to make a 55 mph limit but look at this tasty dump trunk full of highway appropriation funds! I see you salivating. You like it? It's yours if you legislate the 55 mph limit. If you don't we're going to cram the cash into our personal kitchens' freezers." Hence an otherwise unconstitutional declaration becomes reality.
Unless Fields only suggested specific unconstitutional options in his speech--which I very much doubt for many reasons--your assertion is way off base, laserwizard.
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Paulo Becker 4:54PM (6/14/2006)
All I know is that if a company becomes inefficient to the point of asking the government for support, it will make itself a burden to such government. And a burden to the government is a burden to society.
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source1 5:02PM (6/14/2006)
it doesn't really matter if they modernize plants in US, Canada or Mexico because it will all be one union eventually with the dollar replaced by the 'Amero'. It just doesn't matter.
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Dave 5:10PM (6/14/2006)
GM is not going to die, they are number one in China
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Tool 5:10PM (6/14/2006)
I have no sympathy for GM, Ford or Chrysler. Period.
While Toyota, Honda, et al, were investing in infrastructure, better designs and improving their dealer networks, the Big 3 pissed their capital away on tangental businesses. Some great examples? EDS (GM) and Hertz (Ford).
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Steaksauce 5:31PM (6/14/2006)
When Ford (or ANY other U.S. company) was making billions in profits at one time or another (or even, now), you never see the profits ever going back to the government, which can always use help. Or, to the people who had helped the profits grow. You always see the big corps beg, but they scoff at the workers who want what's actually due them?
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Finished.Law.School 5:33PM (6/14/2006)
This is stupid.
The government and taxpayers should not bail out companies that are performing horribly thanks to bad management decisions and union manipulation (such as Ford and GM).
When the government bails out a company the company does not have any incentive to increase efficiency and quality to realistically compete in the global marketplace. Without incentive you get cars that Ford and GM have been producing which use large amounts of 10 year old technology and boring, uninspired designs within and without.
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Bob Miller 6:59PM (6/14/2006)
It appears that all Ford is doing (I haven't read the article on the Ford website either) is asking the Federal Gov. what Nissan, Toyota and Honda have asked (and received) of the state goverments. Nothing wrong there. Let's face it, the Asians (and Germans) get tons of breaks in this country (okay, so they pay a tire tax at the port of entry, big deal).
I say, if companies that aren't even based within the United States get tax breaks, incentives, etc...from any form of government, be it state or federal, then why not give the American companies some of the same breaks? They employ more people than all of the other car companies combined, right? Isn't that alone reason enough to at least try and give these companies at least a little bit of relief?
And Finished Law School and stbham - don't kid yourselves, you go to work and pay taxes to support so many different large corporations, (read: KBR, Halliburton, GE, insert any large defense contractor with ties to our current president here), that it would make your fucking head spin. At least Ford and GM don't build dial a yield nukes like GE. hehehe. I think the last time GM or Ford built anything like that, it was 1942, and it was a tank. And they had no other choice either. Oh, and I wouldn't call the current Mustang GT, Pontiac Solstice, Chevrolet Corvette or Chrysler 300C uninspired either. You guys are just on an anti-American car company rant (for some reason).
Let Ford and GM at least have a fighting chance, if the same opportunities are indeed given to the foreign companies.
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Aki 6:59PM (6/14/2006)
US government shouldn't bail out GM/Ford, they should bail themselves out, even if that means moving their factories to Mexico.
Their products simply aren't competitive. Compare a Camry or Civic to any of the contenders and they pale in comparison.
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Rob Lowe 7:40PM (6/14/2006)
Does anybody remember that the US Government is $9 TRILLION in debt? I know the polticians can't remember it and it must have slips Ford's mind.
If the competitive advantage of manufacturing in the US has been lost then so be it.
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J 7:42PM (6/14/2006)
I liked this part: level the playing field.
Level the playing field in their own country? If the US automakers hadn't made such hideous cars in the 70s and 80s, people wouldn't have started buying Japanese cars and they wouldn't be in this position.
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Aki 8:00PM (6/14/2006)
"And Finished Law School and stbham - don't kid yourselves, you go to work and pay taxes to support so many different large corporations, (read: KBR, Halliburton, GE, insert any large defense contractor with ties to our current president here), that it would make your fucking head spin. At least Ford and GM don't build dial a yield nukes like GE."
That's a red herring, and is irrelevant to the topic at hand. The only thing it says is, "do we need another taxpayer money sink?"
"It appears that all Ford is doing (I haven't read the article on the Ford website either) is asking the Federal Gov. what Nissan, Toyota and Honda have asked (and received) of the state goverments."
Your posts are full of irrelevant information. What stops GM or any US company from getting state perks? They both do. Hence your point is invalid. GM gets state perks whenever they decide where to build their newest factory (ironically, while shutting down some other one)--they don't need federal aid as it ALREADY IS A LEVEL FIELD. Bash that into your thick skull. Ugh.
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Bill 8:08PM (6/14/2006)
maybe if Ford cancels plans to spend another $9.2B in Mexico, and spend it in the U.S. instead... then maybe for every plant they close south of the border, we can help them modernize the U.S. ones.
Think they'll go for that?
I didn't think so either.
Tough S*** Ford!!
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Pistol 8:17PM (6/14/2006)
Level the playing field...........? Why?
All three of the Big 3 have put themselves into the position they are currently in. And you can add the UAW into that statement at the same time. Look at the concessions that the Big 3 have given the UAW to produce their autos. And now when the 3 want something back to make themselves more competitive, the UAW says to "K.M.A.". What the 3 need to do, is to get rid of that silly part of the contract with UAW, that pays workers not to work, but show up and read a paper, etc., everyday. Even the stupid federal government doesn't do that, excluding Congress of course. The best thing that the 3 and UAW could do is to open negotiations and put everything on the table and come up with a fair contract that would equal what Toyota and Hundai pay their workers in the south. There should be no way that a union should dictate like the UAW does to the Big 3. Can't do this, can't do that! BS! Fix your own problems without crying to the public, and fix them today.
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Bob Miller 8:44PM (6/14/2006)
Hey J,
Remember the 79 Honda Civic?
Yeah, I don't either.
I don't think the Japanese cars became real good until the 90s actually. I remember our neighbor's early 80s Mazda 3 rusting away and turning into complete junk within two or three years up in Buffalo while our Buicks were fine.
Who knows what kind of money the govt. already gives the Big 3. ??? Most of the comments we put up here are highly opinionated smoke and mirror guesses and rants anyways. For all we know, GM and Ford are getting kickbacks from Washington already in the form of crazy tax loopholes and extra fleet sales for Chevy Tahoe 4x4s (Border Patrol) and black Suburbans (secret service).
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