See photo.

"Can President Bush force the UAW to take cuts in their OUTRAGOUS HUMONGOUS
Pay and Benefits? "

Now that would be the executive of the state acting as an executive of the
ruling class, wherein the President forces down workers' income, a point of
contest in the class struggle. All this as the auto company executives and
the President and Vice President posture as if they are adversaries.

CB

^^^^^^^

Published: November 15. 2006 3:00AM

Auto news


Bush, auto execs to keep talking


President shows Big 3 sympathy

November 15, 2006



BY JUSTIN HYDE

FREE PRESS WASHINGTON STAFF

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President George W. Bush and Vice President Dick Cheney meet, from left,
with automotive CEOs Alan Mulally, Tom LaSorda and Rick Wagoner in the Oval
Office of the White House to discuss the carmakers concerns about their
costs. (BRENDAN SMIALOWSKI/Getty Images-Agence France-Pres)

What Bush said after meeting in Oval Office

*       Remarks by President George W. Bush following the meeting:


        "The vice president and members of my cabinet, secretary of
treasury, secretary of transportation, members of my staff and I have just
had a constructive and meaningful dialogue with CEOs of the U.S. automobile
manufacturers.


        "First, these leaders have -- are making difficult decisions, tough
choices to make sure that their companies are competitive in a global
economy. And I'm confident that they're making the right decisions, and
that's good news for the American people, because the automobile
manufacturers play such a significant part of our economy and a vital part
of our employment base.


        "We've had a fascinating discussion about a lot of major issues that
we share in common. One, of course, is rising health care costs. And I
assured these leaders that the government is addressing rising health care
costs through a variety of initiatives that I think over time are going to
make a significant difference in not only their cost but the cost to the
U.S. taxpayer as well.


        "We talked about our mutual desire to reduce our dependence on
foreign oil. Obviously, as these automobile manufacturers begin to
incorporate new technologies that will enable us to power our cars in
different ways, it will make it easier for me to be able to tell the
American people we're using less foreign oil. And that's in our economic
interests as well as in our national security interests.


        "And finally, they've -- these gentlemen are well aware that I'm on
my way overseas this evening. And one of the issues I'll be talking about
with our partners in APEC (Asia-Pacific Economic Cooperation) is free trade,
but fair trade. And my message to our trading partners is: Just treat us the
way we treat you. Our markets are open for your products, and we expect your
markets to be open for ours, including our automobiles.


        "And so we've found a lot in common. We'll have a continuing
dialogue. It's in our interest that in government we find out ways that
we'll be able to work to make sure that this industry is as vibrant and
solid as possible. And so this is the beginning of a series of discussions
we'll have, not only with me but also with people in our government. I
really do want to thank you all for coming. I appreciate you coming."

What car execs said

*       . "It appeared the president didn't 100% see it that way." --
General Motors Corp. Chairman Rick Wagoner, describing President George W.
Bush's opinion on the automakers' complaints about the Japanese yen.


        . Health care is "an issue that doesn't only face the auto industry,
but it's an issue that faces every company, every business, every level of
government as well. The same problems they have at the federal government we
have here in our industry." -- Chrysler Group Chief Executive Tom LaSorda


        . "I was very impressed with the president's knowledge of the
situation with competitiveness issues and the fact we're taking the actions
needed to have viable businesses going forward and his commitment to partner
with us on issues that are really important." -- Ford CEO Alan Mulally

NOTEBOOK

*       The first administration official to emerge from the gathering was
Treasury Secretary Henry Paulson, who passed through a group of reporters
outside the White House with two words: "Interesting meeting."

        By Justin Hyde

What the auto execs rode

*       GM and Ford sent their executives to the meeting in hybrid SUVs -- a
Ford Escape and a Saturn Vue Green Line -- while Chrysler used its newest
American-built vehicle, the Chrysler Sebring. They would have looked good
passing the cameras on the White House's driveway, but the White House asked
the executives to park to the side of the building with their vehicles out
of view. The execs hoofed it from there.

WASHINGTON -- After eight months of missed dates, mounting political
pressure and a change in congressional control, just what did Detroit
automakers get from their meeting Tuesday with President George W. Bush?

A promise for more meetings.

While they didn't agree on every issue, especially on Japan's currency, the
executives said they were satisfied that the president is concerned about
the state of the domestic auto industry.

"All the issues were discussed, and we have an open dialogue," Chrysler
Group Chief Executive Tom LaSorda said outside the White House after the
meeting. "That's a door we've been waiting to open, and I think we'll make
better progress."

Bush and the three chief executives had nothing but kind words for each
other after their hour-long sit-down in the Oval Office. The president said
he had a "constructive and meaningful dialogue" with the executives, noted
their companies' role in the U.S. economy and pledged that his
administration would consult with them more frequently.

That was good enough for automakers, who had come armed with a list of
intractable problems -- rising health care costs, currency issues, rising
steel prices -- and a conditional promise to increase the number of vehicles
they build that can burn ethanol or biodiesel if the fuels are available.

With all three automakers in varying states of distress, and General Motors
Corp. and Ford Motor Co. shedding 70,000 jobs, the meeting carried more
urgency than the last White House visit by Detroit's auto chieftains nine
years ago.

Bush said the executives "are making difficult decisions, tough choices to
make sure that their companies are competitive in a global economy."

"It's in our interest that in government we find out ways that we'll be able
to work to make sure that this industry is as vibrant and solid as
possible," he added.

Walking into the White House just after 1 p.m., the three executives were
shown to the Oval Office. Bush sat in an armchair between two
yellow-and-green sofas. On one side sat Ford Chief Executive Alan Mulally,
LaSorda and GM Chairman Rick Wagoner.

Vice President Dick Cheney, a last-minute addition to the meeting, sat next
to the president. On the sofa across from the executives, Treasury Secretary
Henry Paulson, Transportation Secretary Mary Peters and White House economic
adviser Al Hubbard listened in.

As expected, the meeting focused on three key issues:

ENERGY: Wagoner said the automakers told the president they could increase
their production of vehicles that can run on ethanol or biodiesel to half of
their fleet by 2012, if there were more pumps made available to dispense
those fuels. The Detroit automakers said earlier this year they would double
their output of such vehicles to 2 million annually by 2010.

Bush has been an avid promoter of ethanol, frequently mentioning it in
speeches as a way to reduce American dependence on foreign oil. The
automakers back the "25 by '25" coalition, which seeks to have 25% of the
nation's energy supplied from renewable sources by 2025.

Health Care: Bush said he assured the executives that the administration "is
addressing rising health care costs through a variety of initiatives that I
think over time are going to make a significant difference in not only their
cost but the cost to the U.S. taxpayer, as well."

Wagoner said that, while the executives supported such moves as promoting
better technology for medical records and more transparent prices, "I think
the question is 'Can we go faster?' " He also said the automakers discussed
more government attention on catastrophic cases, the sickest 1% of patients
who account for 30% of the nation's health care bill.

"I can't say ... he saw it exactly our way, but he's willing to look into
that," Wagoner said.

TRADE: Here's where the president and the automakers disagreed the most.
Wagoner, who has long contended that Japanese automakers enjoy an unfair
advantage due to a weak currency, said the executives made their case that
Japan had "systematically undervalued" its yen, but Bush "didn't 100% see it
that way," Wagoner said.

The Detroit automakers say that gives Japanese automakers a $3,000 to $9,000
subsidy on each vehicle imported in the United States, which will total
about $2.3 million this year. But concerns about the yen have been
overshadowed in Washington by China holding down the value of its yuan to
boost exports.

The automakers say China isn't a concern because China has opened its market
to them, but lawmakers and policy experts say U.S. trade issues with China
must come first.

"The Big Three can't have it two ways, a stronger yen and a weaker yuan,"
said Peter Morici, an economist and professor at the University of Maryland.
"Japan cannot appreciably revalue its currency, nor can other Asian
governments revalue their currencies, until China stops intervening in
currency markets."

While not committing to discuss currency with Asian leaders on a trip to
Vietnam this week, Bush said his message "to our trading partners is just
treat us the way we treat you. Our markets are open for your products, and
we expect your markets to be open for ours, including our automobiles."

STEEL: The executives also raised their concerns about U.S. steel tariffs.
GM and Ford have said higher steel prices are hurting their efforts to
restore profits and have cost the industry $3 billion in the last 2 1/2
years. U.S. steelmakers say the tariffs protect them from dumping by foreign
mills.

"We are asking the administration to recognize that the continued protection
of steel from competition is severely harming U.S. manufacturing and is no
longer needed," the companies said in a statement.

The automakers had pursued the long-awaited meeting, originally scheduled
for May, after finding few sympathetic ears for their concerns in the
administration, a problem exacerbated by the departure of former GM
executive Andrew Card as White House chief of staff in March.

Michigan's congressional Democrats, who will take over several important
committees when the new Congress convenes in January, have pressured the
automakers to take a harder line with the administration. After their
meeting, the executives suggested that wouldn't be necessary.

"I really do feel like we have a very supportive administration," Mulally
said.

Contact JUSTIN HYDE at 202-906-8204 or [EMAIL PROTECTED]




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________________________________

        Can President Bush force Detroit automakers to improve the QUALITY
of their vehicles? Can President Bush force the UAW to take cuts in their
OUTRAGOUS HUMONGOUS Pay and Benefits? Can President Bush force the Detroit
automakers to stop coddling and protecting their dopehead UAW workers? Since
the German automaker Daimler Benz AG was invited in to this jaw-boning
session, how come the Japanese automakers such as Toyota and Honda were not?

Posted: Wed Nov 15, 2006 8:02 am
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