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Top Executive Defends US Jobs and Auto Industry Technology

17 July 1998

Borg-Warner Automotive's Top Executive Defends U.S. Jobs, Auto Industry Technology, in Congressional Testimony

    WASHINGTON, July 16 -- Defending U.S. jobs and auto industry
technology, John F. Fiedler, chairman and chief executive officer of Borg-
Warner Automotive , testified before the House Subcommittee on
National Economic Growth, Natural Resources and Regulatory Affairs on the
potential impact of the Kyoto Protocol on U.S. employment and competitiveness.
    In his remarks, Mr. Fiedler said, "I believe that the Kyoto Protocol will
hurt our competitive position, endanger U.S. jobs and not really achieve the
goal of reducing greenhouse gases.
    "We know that to be a survivor and significant player in the automotive
industry, we must continue to expand internationally.  My concern with the
present Kyoto Protocol is that it may actually pit one geographic area of our
company against another.  I like to create jobs, but if this protocol unfairly
disadvantages the U.S., I don't want to be creating jobs in other parts of the
world at the expense of our U.S. employees."
    In addressing the issue of technology, Fielder pointed to the time
required by the auto industry to make changes in engines, transmissions and
four-wheel drive systems, as well as the important factor of consumer
acceptance.  "Americans will not give up their trucks and SUV's, but we would
all welcome more fuel-efficient models.  The auto industry has the desire to
reduce emissions and is continuing to develop the technology to do so.  But to
require, through this Protocol, that emissions be below 1990 levels in ten
years is completely unrealistic.  If compliance is forced on industry and
consumers through higher gasoline prices, or restrictive legislation, our
economy, already in a delicate balance, will falter.  Because the auto
industry is already working on solutions to improve air quality, what we need
is time, support and focus, not unenforceable treaties."
    In concluding his remarks, Mr. Fiedler noted that:  "With our
international presence, Borg-Warner Automotive is naturally concerned about
the environment in which our people live and work, regardless of where it is
in the world."  But he called for legislators to deal with environmental
issues on a rational and realistic basis.
    Chicago-based Borg-Warner Automotive, Inc. is a product leader in highly
engineered components and systems primarily for automotive drivetrain
applications.  The company operates manufacturing facilities in 12 countries
serving the North American, European and Asian automotive markets.