Detroit Three Not Seeking Bailout, But They Do Have a Wish List

Washington DC October 31,2006; The AIADA newsletter reported that the Detroit Three automakers insist they are not seeking a bailout similar to the one the federal government granted the airline industry, and there is a broad consensus that Congress wouldn't give them one anyway, reports CQ Today.

"Among the Big Three, nobody's asking for a bailout and nobody's offering, said Ziad Ojakli, Ford's group vice president of corporate affairs.

Requesting a federal bailout may further impede the Big Three's turnaround processes. "It would be an admission on the companies' part that they themselves cannot turn the corner," said Gary Chaison, a professor of labor relations at Clark University.

U.S. automakers are still seeking help from Congress in other ways. Most notably, they are seeking relief from health care costs, fair energy policy, and trade issues such as currency manipulation by competitor's home governments.

They assert that help in these areas will help level the playing field with international nameplate automakers, which have been maintaining very successful North American operations, employing tens of thousands of Americans, according to CQ.

Many industry officials and observers say that a change in the control of Congress as a result of the 2006 Midterm Elections may create a more open environment for the Detroit Three's legislative agenda.