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Auto Leaders to Meet with President In May

April 28, 2006

• GM, Chrysler Hope Incentives Will Boost Sagging Sales • Auto Bailout Chief: GM's CEO Had To Go • Taxpayers Unlikely To Recover Full Auto Industry Investment --- • More about Auto Sales ...

The big bosses from the big three are coming to Washington to jawbone the President about the sorry state of the U.S. auto industry. The word "bail-out" won't be uttered though.

The CEOs of General Motors, Ford and the Chrysler will meet with President Bush next month. They will discuss gas prices, alternative fuels, high pension and health-care costs and automakers' concerns about foreign exchange rates.

U.S. auto industry leaders worry that the Japanese yen is undervalued against the dollar which they claim gives Japanese carmakers a significant price advantage. The price advantage translates into lower prices for U.S. consumers shopping for Japanese vehicles and products.

The White House meeting will mark the first time since April 2003 that U.S. automakers have met with Bush.

GM and Ford plan to cut up to 60,000 factory jobs and shut down more than two dozen plants in response to dwindling market share, high labor costs and increased competition from Asian rivals.

Chrysler is still making money from its North American business but it has resorted to high spending on sales incentives to bring buyers into showrooms.

In January, Bush suggested that the automakers should take responsibility for solving their own problems by offering "relevant" products.

Asked about the 1979 bailout to keep Chrysler Corp. from bankruptcy, Bush said, "I would hope I wouldn't be asked to make that decision."

The President and his administration a scrambling to deal with record oil prices and gasoline that is pushing through $3 per gallon.

Ford has been lobbying since last year for tax credits and other incentives to help drive the development of more fuel-efficient vehicles.

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