GM focus of legislation that could mean military contract

October 21, 2002 The AP reported that Michigan lawmakers are pushing for legislation that could help General Motors Corp. win a $4.25-billion Turkish military contract and create hundreds of new jobs in Flint.

If GM snags the contract, the world's largest automaker would supply Turkey with 40,000 trucks, the Detroit News reported Friday.

The modified Chevy Silverado pickups would be noncombat vehicles for use in Turkey's NATO peacekeeping mission in Afghanistan.

There is a catch, however. If Congress fails to pass legislation enabling the U.S. Export-Import Bank to use taxpayer dollars to ensure against a Turkish default, the contract will likely be won by French automaker Renault SA, according to the 10 members of the Michigan delegation working to support the deal.

"The sale of these vehicles will help develop expansive new markets by exposing foreign countries to the quality and reliability of American-made vehicles," wrote Rep. Dale Kildee, D-Flint, and the nine other Michigan lawmakers in an Oct. 3 letter to the House Appropriations Committee asking for help with the transaction.

The impact on Flint could be significant. GM's Flint plant -- which employs 3,100 people -- churned out 154,825 full-size Silverado trucks last year. Adding 40,000 vehicles over 3 years would represent nearly a 10 percent jump in volume.

But Washington's budget politics are putting the fate of the deal in doubt. The Michigan delegation is targeting the must-pass spending bills as the vehicle to carry the needed GM authorization, bypassing the lengthy hearing process associated with a stand-alone bill.

GM would not comment on the deal.