Ford chief calls for more government aid
The U.S. government should be doing much more to help the American auto industry make a transition to a future of reduced dependence on oil, Ford Motor Co. Chairman and Chief Executive Bill Ford said this morning in remarks at the National Press Club.
"Some shrug and say American manufacturing is yesterday's news, and we should rely squarely and solely on the service sector, and the only thing that matters is that we get our goods as cheaply as possible, and we shouldn't worry about collateral damage," said Ford. "I'm not convinced. With the right investments, I believe American industry can win, but we can't get there alone."
Ford pointed out that Japan's government lent support that helped make its domestic auto industry the world leader in hybrid battery technology and said that South Korea, China, and other countries are making similar investments. Ford called for similar programs in the United States: a dramatic increase in research and development tax credits to support U.S. companies working on advanced vehicles, tax incentives to convert outmoded auto-parts factories to high-tech facilities, and more tax credits to encourage consumers to buy hybrids and other energy-efficient vehicles.
He also said the government should lead a program to expand the number of ethanol fueling stations across the country, since his company and others are vastly increasing the number of "flexible fuel" vehicles that can run on ethanol. Ford said that by 2010, the government should commit to buying only advanced-technology vehicles for its own needs to set an example for consumers.
Ford's speech, sponsored by the Business Round Table, came a day after competitor GM announced it will eliminate 30,000 jobs as it struggles to avoid bankruptcy. Ford said his company also will have plant closings–reiterating previously announced plans–but he said the company would not announce any details until January. Ford was in Washington to meet with Bush administration officials to advance his idea for a government-industry energy summit to address America's energy-security needs.
"We, the industry, and we, Ford, cannot unilaterally solve the problems that face us," Ford said. "We have to be capable of providing vehicles that society wants. But we can't solve the infrastructure problem, and we can't drive customer behavior without help from the government."
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