For Immediate Release
Office of the Press Secretary
November 14, 2006
The Oval Office

2:03 P.M. EST

President Bush Meets with CEOs of U.S. Automobile Manufacturers
The Oval Office

The Oval Office President's Remarks view 2:03 P.M. EST

THE PRESIDENT: 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 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.

Thank you very much.

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WASHINGTON - Detroit-based auto industry leaders had meeting with the President Bush at the Oval Office, Whitehouse in November 14, 2006 in order to press their concerns about health care and trade issues while making clear that the troubled industry does not want a federal bailout. The meeting planned since March 2006. They talked about the spiraling costs manufacturers face on health care, the advantages Japanese automakers have because of a weak yen and their work to develop alternative fuel vehicles. All three automakers spend more on health care per vehicle than steel, which adds about $1,000 to the cost of a car built by the Big Three. GM, the nation's largest private provider of health care, spent $5.3 billion on health care last year for 1.1 million employees, retirees and their dependents.

Photo shows that President George W. Bush and Vice President Dick Chaney meet with automotive CEOs Tuesday, 14, 2006 in the Oval Office. From Left are Ford CEO Alan Mulally (The former CEO of the Boeing Commercial Company and Executive Vice President for the Boeing Company), Chrysler Group President and CEO Tom LaSorda, and General Motors Chairman and CEO Rick Wagoner. The photo credit: White House photo by Kimberlee Hewitt .

The automakers have also sought support on trade, arguing that Japan's weakened yen makes imported goods from Japan cheaper. Auto industry officials also noted that China is keeping its currency artificially low against the dollar, making Chinese goods cheaper in the U.S.

According to By KEN THOMAS, Associated Press Writer from Yahoo.com, Ford CEO, Alan Mulally told the Detroit Free Press editorial board last week "It's just so important that the governments around the world ensure that the market sets exchange rates," Bush is meeting with Japanese Prime Minister Shinzo Abe on Saturday in Vietnam. Kevin Reale, research director for Boston-based AMR Research, an industry consulting company, said the proximity to the meeting gives automakers the chance to urge Bush to discuss "how to level the playing field on how it relates to currency." GM and Ford are both engaged in large downsizing plans. GM has persuaded about 35,000 hourly workers to leave the company under early retirement or buyout plans and Ford has offered buyouts and early retirement packages to all 75,000 U.S. production workers. Ford hopes to reduce its hourly work force by 25,000 to 30,000 and is expected to shutter 16 plants.

President Bush addressed that to reduce our dependence on foreign oil since the automobile manufacturers begin to incorporate new technologies that will enable us to power our cars in different ways and using less foreign oil is in our economic interests, as well as in our national security interests. He also talked about the partners in APEC is free trade, but fair trade. He is sending messages to the trading partners that they 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." President will continue to dialogue and he will find out ways that the government will be able to work to make sure that this industry is as vibrant and solid as possible.

Reported by: Catch4all.com, Sandra Englund, November 14, 2006

References:

(1) Retrieved in November 14, 2006

http://www.whitehouse.gov/news/releases/2006/11/20061114-1.html

http://www.whitehouse.gov/news/releases/2006/11/images/20061114-1_p111406kh-0237-515h.html

http://news.yahoo.com/s/ap/20061114/ap_on_bi_ge/bush_automakers_3

http://seattlepi.nwsource.com/business/292344_bushautomakers15.html