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Automobile industry

US Automakers Meet with President Bush to Discuss Healthcare and Trade Concerns

Strategic Insights

— 1 min read

US auto executives are meeting with President George W. Bush on Tuesday to discuss pressing concerns about healthcare and trade issues. The Big Three automakers - General Motors, Ford, and DaimlerChrysler's Chrysler Group - are expected to present their case to Bush, who will express his support for the American auto industry and listen to their concerns. The meeting comes after Bush's comment in a Wall Street Journal interview that the American carmakers needed to "make a relevant product," which annoyed US auto bosses.

Key Takeaways:

  • The Big Three US automakers - General Motors, Ford, and DaimlerChrysler's Chrysler Group - are meeting with President George W. Bush to discuss healthcare and trade concerns on November 14, 2006.
  • The meeting is expected to focus on four main issues: energy policy, healthcare, trade (including possible currency manipulation), and rising costs for materials, particularly steel.
  • The executives are not seeking specific relief for the industry, but rather want to share their concerns with Bush and discuss competitiveness going forward.
  • Ford Motor Co. reported a loss of 5.8 billion dollars in the third quarter, while General Motors and Chrysler reported losses of 91 million dollars and 1.5 billion dollars respectively.
  • US auto executives are expected to raise the issue of the industry's struggles, including job losses and hardship, while Japan-based Toyota Motor Corp. enjoys soaring profits.
  • The meeting comes after the midterm elections, which revealed voters' worries about the long-term domestic economic outlook, particularly in manufacturing centers in the Midwest.

Statistics:

  • The US auto industry is expected to shed 78,000 jobs by 2008.
  • Ford Motor Co. reported a loss of 5.8 billion dollars in the third quarter.
  • General Motors reported a loss of 91 million dollars in the third quarter.
  • Chrysler reported a loss of 1.5 billion dollars in the third quarter.
  • The US auto industry is concerned about rising costs for materials, particularly steel.

Sources:

  • Xinhua via COMTEX
  • The Wall Street Journal
  • Ford Motor Co.
  • General Motors Corp.
  • DaimlerChrysler AG's Chrysler Group
  • Comtex SmarTrend(SM) Alert
  • Comtex News Network, Inc.

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