GM, Ford - Won't Pledge to Buy American

[Ichingcarpenter]

Sen. Sherrod Brown (D, OH) asking GM, Ford, and Crysler,
'Will you buy American if we give you taxpayer dollars?'


Michael Collins

"Scoop" Independent News

(Wash. DC) The CEO's of General Motors, Ford, and Chrysler were in the Capitol Thursday asking for $34 billion dollars to stay in business for the next few months. The three companies are now at the top of the corporate "dead pool," with a bankruptcy for GM possible by the end of the year. They appeared before the Senate Committee o Banking, Housing, and Urban Affairs.

Senator Sherrod Brown (D, OH) provided one of the most telling moments when he asked the three chiefs to commit to continued purchasing from United States automotive suppliers at the same or increased levels in return for federal bailout funds.

Suppliers for GM, Ford and Chrysler are located across the country. A GM bankruptcy would resonate through the aftermarket, original equipment (for new cars), and heavy duty parts suppliers creating broad based economic hardship.

The following transcription shows clearly that both GM and Ford failed to commit in any way to Brown's goal - a firm commitment to buy American if they receive taxpayer funds.

U.S. Senate Committee on Banking, Housing, and Urban Affairs, Dec. 4, 2008 (311-313)

Sen. Brown: "Auto suppliers, of course, as auto companies, have a lot to worry about these days. One of the concerns is that tax payer dollars will go into this program and their concern is that they not be used to off shore American supplier jobs ... I'd like just a yes or no on each of the three CEOs, for you to commit and pledge to maintain or increase your US value added content ...if you receive taxpayer support both for your companies directly that you will increase to increase or keep the same on the value added content and on your suppliers that you use if you'd commit to that if you receive tax dollars."

G. Richard Wagoner (GM): "I have to look at the data. Certainly our intention ... we're finding that the U.S. suppliers are more competitive today in a lot of areas than they've been in years. I feel like that will be the direction but I'd like to look at the data and respond to you if I could.">>>>>snip

http://www.opednews.com/articles/GM-Ford--Won-t-Pledge-...

[gollygee]

1. If they want to be bailed out with American money

they need to keep that money in America helping American workers.

[Taverner]

3. I honestly wonder if the big 3 are in as much trouble as they say

If they aren't going to commit to buy American, then maybe they don't need the money

[Ichingcarpenter]

6. I think its more complicated but Wagoner was an idiot and

should have been more honest, they have used foreign suppliers for years
and out sourced those jobs too.

[natrat]

14. the billions to the banks are unaccountable, speculation is some went abroad to pay off china

[Popol Vuh]

17. Agreed.

In fact, if they want American money (corporate welfare), then they need to move ALL their operations and purchases back here in America. If not, then, I say fuck them. Let them fail then publicly step in and buy their industries for pennies on the dollar and subcontract out the management jobs - to Americans of course.

[Orrex]

2. I want to execute any corporate spokesperson who says 'out intention...'

That's a wholly undisguised "fuck you" to anyone who might later try to hold them to any promise made at any point.

[gratuitous]

4. "Just give us money and leave us alone!"

I sense another hearing being convened for our tone-deaf auto executives. They fixed the corporate jet gaffe; can they fix this one? Something tells me that if worker representatives had been called to testify, they wouldn't have made either of these glaring mistakes. They would have gotten to the hearing in a manner not calculated to piss off committee members, and when asked about buying American, worker representatives wouldn't have hesitated to say yes.

[JVS]

5. They'll use the money to move out sooner

[msedano]

7. Collins on the mark as usual

He has a keen eye for precisely the right angle. Ford own suppliers all over North America, thanx to NAFTA. And some of Ford's most productive plants are in Mexico and Canada. Of course, US distributors could two-step purchases, i.e., buy materials in Mexico, resell to Ford in the USA. If our money is going to the Big 3 Congress needs to stipulate made-in-the-USA, not made elsewhere and marked up here. The nation needs manufacturing industries, not knowledge workers who merely move invoices.

recommended.

mvs

[madrchsod]

8. my daughter`s line makes/assemblies a part for 6 auto manufactures

the parts come from...india,china,canada,usa,south korea. india took away some south korean parts because of ...well slave labor wages.south korea took the parts from the usa because of cheaper labor and government "backing".the usa does not make small electric motors that can compete with china`s wage rates. this is just three parts of about 20-25.
the other 3 manufactures won`t pay the increased costs if we made the parts here and they`d go elsewhere.

it`s a great idea but the devil is in the details

[stillcool]

9. Too bad they can't close a couple....

of those other 31 manufacturing plants across the globe.

[Ichingcarpenter]

15. That's what "patriots' don't get

GM is a global company that never thought or cared about American values
unless it fit their goals.

They fueled the Nazis.

[stillcool]

18. I don't get it...they have manufacturing..

plants in 35 countries..why is the U.S. responsible for bailing them out?

http://www.gm.com/corporate/about/global_operations /

GM built 1.6 million vehicles in Asia in 2005, an increase of more than 20 percent from the previous year, according to Automotive News, which predicted the company's Asian plants will be outproducing its European factories before 2010.

Electronic components purchased from China and other Asian locations also will be shipped to GM plants around the world in increasing number

[Ichingcarpenter]

20. The US division is taken over by the US Government

Wagoner gets the rest. Just wait tell he goes to Europe and Begs.

Michigan can create the cars we want. GM needs to be broken up
until it is an American company again.

[RB TexLa]

10. Does he want them to chant "U-S-A, U-S-A" at every shift change?

[Historic NY]

11. Umm don't they follow NAFTA most auto suppliers have companies in Mexico & Canada.

and production plants world wide.

[Ichingcarpenter]

16. NAFTA sure did help somebody

and it wasn't the American Worker.

GM management pushed hard for NAFTA

[Dark]

12. Wow. Sherrod's my senator.

Go Brown!

[TexasObserver]

13. When GM goes down, maybe Ford and Chrysler will rethink.

[fudge stripe cookays]

19. They need to take the money they were going to give the Big 3...

and give that big influx of cash to Tesla to bbegin mass manufacture of electric hybirds.

Once they are able to get the price of THOSE cars to an affordable price point, begin hiring the out of work Big 3 employees and begin churning out hybrids!! The same folks thrown out of work from this disaster could really begin working at something renewable, better for the economy AND better for our foreign policy abroad.

[lumberjack_jeff]

21. How can you promise to maintain purchasing when you sell less stuff?

Why weren't they asking these tough questions of Morgan Stanley. Goldman Sachs and AIG?

[Ichingcarpenter]

23. Because they got their monies from those bastards and

were truly threaten by Marital Law if they didn't

[Initech]

22. Simple solution: Make outsourcing a federal crime.

That will get them to listen, right?

[Ichingcarpenter]

24. Break up GM and have their North American Division survive

I'm sorry these bastards only look at the bottom dollar
until they have to borrow it from the American taxpayers.

Let Canada and Mexico get on this too..... Man, I sound like
one of those wanting the new money system.