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June 3, 2009

U.S. Chamber of Commerce to Monitor GM and Chrysler Restructuring


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Photo: Evolution of Motor Car: The original Benz patent motor car of 1888 in the Dr. Carl Benz Automotive Museum in Ladenburg, Germany. (Photo © Daimler AG)

Thomas J. Donohue, President and CEO of the U.S. Chamber of Commerce, has issued the following statement on the U.S. Federal Administration's plan to restructure General Motors and the impending ruling on Chrysler:

"The future success of General Motors and Chrysler ultimately depends on whether they can profitably design and build cars that Americans and other consumers actually want to buy.

Our biggest concern with the restructuring plan announced today is the potential for governments and unions to influence production, product, workforce, and management decisions in ways that could jeopardize the automakers' chances for survival, put politics and special interests above sound business strategy, and disrupt our nation's trading relationships across the world.

For example, the UAW has said that it pressured GM to change where the company plans to produce a new line of smaller cars. And as part of the GM restructuring, the administration has reportedly closed the U.S. market to Opel and blocked Opel's forays into China so it could not compete with GM -- clear examples of market manipulation and protectionism.

If members of Congress, along with government officials from the United States to Germany to Canada, are allowed undue influence over management's decisions, then you can write this down: These companies will not return to profitability and their survival will be seriously challenged. The global talent that exists in the automotive sector must be allowed to do its job and be paid on a competitive basis. Management must be permitted to make tough decisions in a competitive global market without political interference.

So going forward, the U.S. Chamber will carefully monitor the activities of the new GM and Chrysler boards, and we will expose and fight any counterproductive influence by government, unions, or politicians over decisions that should be left to management. And we will continually insist that government reduce and eliminate its ownership stake as soon as possible."

(The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.)

Source: U.S. Chamber of Commerce

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Edited & Posted by Surender Hastir | 2:39 PM | Link to this Post


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