Global Climate Policy, Air Quality Standards and Trade Are Top Issues for Auto Industry CEOs
24 July 1997
Global Climate Policy, Air Quality Standards and Trade Are Top Issues for Auto Industry CEOs
Industry's Annual Meeting Includes Briefings on Capitol Hill
WASHINGTON, July 24 -- Having made tremendous investments in
cleaner technology, today the CEOs and other senior management officials from
36 of the nation's leading automakers and suppliers reaffirmed their
commitment to cleaner advanced technologies. However, the group expressed
concern that the U.S. appears to be rushing toward the signing of a global
climate treaty in December that will commit the U.S. to a severe reduction in
energy consumption with questionable environmental impact.
Today, they urged the Clinton Administration to rethink its approach to
the issue. The Council stressed that the current proposals appear based on
uncertain science, will do little to reduce greenhouse gas emissions, and
could severely undermine this country's international competitiveness.
In meetings on Capitol Hill, members of the Joint Automotive Supplier
Governmental Action Council said a U.S. commitment to severely cut carbon
emissions could wreak economic havoc.
"This has become a trade, economic and foreign-aid issue disguised as
environmentalism," said Chrysler Corporation Chairman, President and CEO
Robert J. Eaton, who is co-chairman of the Council. "We're moving toward an
ill-advised solution involving a massive transfer of American jobs.
"Instead of trying to put the U.S. on an energy diet by using taxes or
some sort of rationing scheme, the U.S. should lead the way in a major push to
develop breakthrough technologies that lead to a reduction of greenhouse gas
emissions," Eaton said.
The Supplier Council's Annual Meeting comes as the U.S. Senate is set to
vote on a resolution, which has the backing of 65 Senators, questioning the
Administration's global climate policy. Introduced by Senators Robert Byrd
(D-W.Va.) and Chuck Hagel (R-Neb.), S. Res. 98 is aimed at preventing the U.S.
from signing any climate treaty that excludes nations like China and India
from the process or is harmful to the U.S. economy. The sense of the Senate
resolution is wholeheartedly endorsed by the automotive executives, who
encouraged the Administration to abide by its conditions before becoming a
signatory to any international agreement.
Council members also were critical of the new National Ambient Air Quality
Standards (NAAQS) approved by President Clinton last week. They believe the
tougher standards for particulate matter and ozone lack the scientific basis
that would justify their costly implementation.
Trade with Japan is another priority issue for the Council. Japan has
failed to deregulate its market for parts or to open the dealer network to
American cars and trucks since the signing of the 1995 U.S.-Japan Automotive
Trade Agreement. In addition, the weak yen has reversed U.S. automotive
export gains and led to a surge in Japanese imports to the U.S., widening an
already troubling trade imbalance between the two countries. The Council also
expressed concern about Korea's closed automobile market and their excess
manufacturing capacity.
Larry A. Bossidy, chairman and CEO of AlliedSignal, Inc., who has co-
chaired the Council with Eaton for the past two years, said that the
automotive representatives also want to see the President propose and Congress
grant "fast track" negotiating authority to the President. "That step will
help ensure that Latin American markets are open to automotive exports from
the U.S.," he said.
The Council's General Meeting at Washington's Sheraton Carlton Hotel was
followed by a luncheon reception in the Cannon Caucus Room on Capitol Hill and
issue briefings for key Members of Congress.
The Joint Automotive Supplier Governmental Action Council was created in
1992 to allow U.S. auto manufacturers and auto parts and components suppliers
to work together to foster mutual understanding between the industry and
government through participation in the legislative and regulatory processes.
The Council represents 36 companies. Its members include the Chief
Executive Officers of America's car companies, as well as 33 major U.S.
companies that supply parts, components, material and services to the
industry.
SOURCE American Automobile Manufacturers Association
