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Friday November 6, 11:00 PM
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Reuters Summit - U.S. to be more selective with carmakers
By John Crawley
WASHINGTON (Reuters) - Automakers can expect the U.S. government to be attentive to its multibillion-dollar stake in their businesses next year and selective in its
efforts to reshape the industry.
Government emphasis has shifted from bailouts and bankruptcy to investment oversight and innovation, with congressional and White House demands for greater
fuel-efficiency driving the agenda.
"There's not much appetite for further support to the auto industry," U.S. Representative Gary Peters, a Michigan Democrat whose district includes Chrysler headquarters, told Reuters in an interview. "You can still make the case for strategic (help) but you have to make it in a more thoughtful way."
Taxpayers own a majority stake in General Motors and a 9 percent interest in Chrysler after government-led rescues totaling more than $64 billion. The administration pledges a hands-off approach as the companies seek to remake themselves in an improving but still uncertain sales market.
"Any huge shareholder, like in the case of General Motors, inevitably is going to keep an eye on things," Jerry York, a former Detroit executive and industry adviser, told the Reuters Autos Summit this week. "As long as things are going reasonably well, they'll likely stay in the background."
The ability of GM and Chrysler to stand on their own and repay at least some of the colossal loans hinges on a rebound in American housing and employment, industry executives and consultants say.
