Better Times Ahead for
U.S. Automakers, Energy Secretary Says
January 26, 2006 — By Tom Doggett, Reuters
WASHINGTON — U.S. automakers are
going through a temporary rough patch but eliminating thousands of jobs
and overhauling product lines will make them more competitive in the
long run, U.S. Energy Secretary Sam Bodman said Tuesday.
"It's the competitive pressures that are being brought to bear on these
(auto) companies that ... will in fact make them better over time,"
Bodman told reporters at the Washington auto show.
"But there will be a period of pain that they are going through and that
the employees are going through right now," Bodman told reporters.
Bodman's comments came a day after Ford Motor Co . announced it was
closing 14 U.S. plants and eliminating up to 30,000 jobs over the next
six years.
DaimlerChrysler said Tuesday it would cut 6,000 positions among its
white-collar staff in the next three years.
General Motors said in November that it would shut 12 facilities and
slash 30,000 jobs to reduce excess production capacity.
Detroit's Big Three car makers are under enormous pressure from foreign
rivals, mainly Japanese car makers who have been boosting their sales in
the United States for years.
Industry experts agree that U.S. auto companies have to cut costs and
operate more efficiently to survive.
"I'm proud of (the automakers) that they have made the adjustments that
they have, and that they've recognized that there are problems," Bodman
said. "This is a competitive marketplace. I wouldn't have it any other
way."
Before he joined the government, Bodman served as chairman of Cabot
Corp. , a Boston-based chemicals company.
Separately, Bodman announced the Energy Department will provide $100
million over four years for research projects that will improve hydrogen
fuel cells that will eventually run a fleet of environmentally-friendly
vehicles.
The research is part of President Bush's long-term $1.2 billion
initiative announced in 2003 to reduce U.S. dependence on foreign oil by
developing hydrogen-powered fuel cells to run cars and trucks.
The emissions-free vehicles would also cut pollution as their only
by-product would be water. The administration said its program is on
track for automakers to have affordable hydrogen-powered vehicles in
showrooms by 2020.
Bodman said $19 million will also be given over five years for a dozen
government-private sector, cost-share projects that will try to improve
hydrogen fuel cells.
Source: Reuters
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