Government, Car Industry Show Unity
The secretaries of Labor and Commerce met Wednesday with the heads of the domestic auto makers and top labor leaders in an unprecedented gathering aimed at boosting consumer confidence in the wake of the devastating terrorist attacks on the U.S.
“Today is a tremendous, tremendous display of labor-management cooperation and unity,” said Labor Secretary Elaine Chao, who traveled to Detroit with Commerce Secretary Don Evans for the meeting with the heads of the Big Three auto manufacturers and major unions and parts suppliers.
“The terrorist attack on Sept. 11 was a direct attack on American economic might,” Chao said at a General Motors Corp. plant in this suburb of Detroit. She was flanked by the meeting’s other participants arrayed before a large American flag. “Behind me today are corporate leaders, organized labor leaders, joined together to show that America is unbowed.”
The talks marked the first time Chao and Evans had met with labor and auto industry executives since the jetliner attacks in New York and Arlington, Va., and was aimed at encouraging public faith in the economy and the auto industry, a bellwether business that closely reflects consumers’ moods.
The meeting was more a pep rally than a platform for specific initiatives, though auto executives called for federal measures to give consumers more access to credit. GM later announced a program of new buyer incentives.
There was no talk of government assistance akin to the help the Bush administration and Congress are considering for the beleaguered airline industry. But participants said they are striving to keep the broader economy on course, not just the automotive sector.
“This is not about the auto industry. It’s about the tragedy we had in our country,” said Stephen Yokich, president of the United Auto Workers. “Pulling together as management and labor, on behalf of all Americans. . . . We’re here to see what we can do.”
The Cabinet secretaries joined GM Chief Executive G. Richard Wagoner Jr., Ford Motor Co. Chairman William Clay Ford Jr., Chrysler Group Chief Executive Dieter Zetsche, the heads of several auto suppliers and leaders of the UAW, the AFL-CIO and the steelworkers, ironworkers and carpenters unions.
Sales of new autos have been slipping from last year’s record pace, especially for the Big Three, and the auto makers’ stocks have plummeted since trading reopened Monday. There is concern among analysts and investors that additional production and job cuts could add to the already sizable reductions announced this year.
GM announced after Wednesday’s meeting that it will offer interest-free financing on all its car and truck models, beginning Friday through the end of October.
“We know this is a difficult time to talk about an incentive program, but GM has a responsibility to help stimulate the economy by encouraging Americans to purchase vehicles, to support our dealers and suppliers, and to keep our plants operating and our employees working,” said Ron Zarrella, GM president for North American operations.
Ford Motor responded to the terrorist attacks by sharply cutting third-quarter production, saying border checks, especially in Canada just across the Detroit River from Motor City, have resulted in lengthy delays for parts deliveries.
The auto maker, No. 2 globally behind GM, will produce 110,000 to 120,000 fewer cars and trucks this quarter than planned--a far greater hit than experienced by GM or Chrysler Group, a unit of DaimlerChrysler of Germany.
William Clay Ford, sporting a red, white and blue lapel ribbon, said his company plans to stick to its lowered production schedule, but “what I heard today makes me feel very strong and bullish.”
