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[/FONT]The domestic auto industry is driving the investments in advanced biofuels
[/FONT]The domestic auto industry is making the US a center for hybrid technology
[/FONT]The domestic auto industry is the only industry capable of standing up a domestic advanced battery industry
[/FONT]The domestic auto industry is the only industry sustaining development of a domestic fuel cell industry.
[/FONT]Domestically developed advanced automotive technology is an important path to US export growth
[/FONT]Collapse of the auto industry would result in a devastating economic and competitive scenario for the nation[FONT=Calibri,Calibri].
Support for the Auto Industry is in America’s Best Interest
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Support for the auto industry allows it to continue its transformation and progress that began well before the current economic crisis.
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[*]U.S.[/FONT][FONT=Calibri,Calibri]‐[/FONT][FONT=Calibri,Calibri]based auto manufacturers, in conjunction with the UAW, have taken [/FONT]major actions to restructure their business to be fully competitive[FONT=Calibri,Calibri].
[*]Latest [/FONT]UAW agreement (Fall 2007) provides solid basis for cost competitiveness[FONT=Calibri,Calibri]…e are restructuring our companies, reducing costs, improving quality, increasing productivity…ll the tough, necessary actions that will help us emerge as a stronger, more competitive company.
[*]We've negotiated new agreements with our UAW partners that have rewritten the rules of competition in our business... [/FONT]our cumulative structural cost reduction from 2006[FONT=Calibri,Calibri]‐[/FONT]10 will be approximately $13[FONT=Calibri,Calibri]‐[/FONT]14 billion [FONT=Calibri,Calibri]and have responded in an [/FONT]innovative way to reduce our so[FONT=Calibri,Calibri]‐[/FONT]called "legacy" costs [FONT=Calibri,Calibri]associated with pensions and retiree healthcare. [/FONT]
[*]Starting in 2010[FONT=Calibri,Calibri], we expect our cash spending on U.S. pensions and retiree healthcare to decline to about $1 billion per year. That's a [/FONT]savings of about $6 billion a year.[FONT=Calibri,Calibri].. which makes us dramatically more competitive...
[*]GM has been [/FONT]streamlining its U.S. operations[FONT=Calibri,Calibri]. It has [/FONT]reduced its U.S. salaried workforce from 44,000 in 2000 to 32,000 in mid[FONT=Calibri,Calibri]‐[/FONT]2008, [FONT=Calibri,Calibri]and its [/FONT]hourly workforce from 132,000 to 72,000 during the same period. [FONT=Calibri,Calibri]
[*]In response to the recent economic crisis, GM is further tightening its belt. The company recently [/FONT]took additional actions to reduce salaried employment costs by 20 percent, eliminate raises and discretionary bonus for executive and management employees, [FONT=Calibri,Calibri]and suspend the 401k match for salaried employees.
[*]We led the Harbor report for manufacturing productivity with more of our plants leading their respective segments than any other. [/FONT]
[*]Support allows continuing product and technology investment necessary for future competitiveness…e’ve also heard the call for more fuel[FONT=Calibri,Calibri]‐[/FONT]efficient passenger cars.
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[*]Recent product launches (like Chevy Malibu) confirm U.S. industry’s [/FONT]commitment to product excellence.
[*]Major commitment to cars [FONT=Calibri,Calibri]/ crossover (18 of GM’s next 19 launches, 13 of last 15).
[*]Our [/FONT]new products are winning acclaim[FONT=Calibri,Calibri]: Saturn Aura and Chevrolet Malibu won North America Car of the Year. The Cadillac CTS was Motor Trend Car of the Year. The 2 Mode Hybrid Chevy Tahoe—a full size SUV that seats seven with great towing capability—gets the same highway gas mileage as a Toyota Camry and received Green Car of the Year at the LA Auto Show. [/FONT]
[*]Quality also now viewed as fully competitive[FONT=Calibri,Calibri]…ith [/FONT]lower warranty costs [FONT=Calibri,Calibri]and with the new Chevy Malibu, Cadillac CTS, Saturn Outlook and Chevy Silverado recognized by both J.D. Power and Consumer Reports.
[*]At GM, we offer [/FONT]17 models achieving 30 MPG highway or better [FONT=Calibri,Calibri]– twice our nearest competitor. [/FONT]
[*]Support enables growth in U.S. technological capability/leadership in key new propulsion areas and strengthens the nation’s energy security…he U.S. cannot allow its current dependence on foreign petroleum to be replaced with foreign[FONT=Calibri,Calibri]‐[/FONT]sourced and developed technologies.
[*]The Chevy Volt changes the rules of the game [FONT=Calibri,Calibri]by creating an entirely new propulsion category [/FONT][FONT=Calibri,Calibri]‐ [/FONT][FONT=Calibri,Calibri]Extended Range EV. Range is 40 miles on pure electric and zero emissions…ith [/FONT]most commuters never using a drop of gas. [FONT=Calibri,Calibri]
[*]A healthy domestic auto industry is [/FONT]key to US R&D preeminence [FONT=Calibri,Calibri]‐ [/FONT][FONT=Calibri,Calibri]government support will maintain US leadership in overall R&D spending for years to come
[*]Without the R&D spending of domestic auto companies, the US would fall behind Europe in overall R&D spending according Booz Allen’s recent report on the "Global Innovation 1000"
[*]Booz Allen has rated GM at the top[/FONT][FONT=Calibri,Calibri]‐[/FONT][FONT=Calibri,Calibri]ranked US company in global R&D spending in 2008 at $8.1 billion – ranked second across all companies globally [/FONT][FONT=Courier New,Courier New]
[/FONT]The domestic auto industry is driving the investments in advanced biofuels
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[*]Funding for development of cellulosic ethanol and other advanced biofuels rests on the prospect of a large market for high level ethanol blends like E85 in flex fuel vehicles.
[*]The domestic auto companies have committed to make half of their fleets FFVs or biofuel capable diesels by 2012 – no other automakers have made any similar commitments. [/FONT][FONT=Courier New,Courier New]
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[/FONT]The domestic auto industry is making the US a center for hybrid technology
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[*]GM has 8 hybrids in the market using technology developed in the U.S. – 20 are planned by 2012.
[*]Chrysler, Daimler and BMW are partnering with GM to further deploy GM’s domestically developed hybrid technology to the marketplace. [/FONT][FONT=Courier New,Courier New]
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[/FONT]The domestic auto industry is the only industry capable of standing up a domestic advanced battery industry
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[*]While many recognize the importance energy storage technologies in the 21[/FONT][FONT=Calibri,Calibri]st [/FONT][FONT=Calibri,Calibri]century, only the auto industry had the potential purchasing power to drive the location of advanced battery manufacturing – and only the domestic auto industry can drive that investment in the US. [/FONT][FONT=Courier New,Courier New]
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[/FONT]The domestic auto industry is the only industry sustaining development of a domestic fuel cell industry.
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[*]Leading nations like Japan and Germany are planning to begin early commercialization of fuel cells around 2015.
[*]The domestic auto industry is progressing on a similar timeline, but without US automakers, all of the critical fuel cell components will come from abroad.
[*]GM has spend over a billion and a half dollars to develop fuel cell vehicles, AND a largely domestic supply base for this fledgling industry. [/FONT][FONT=Courier New,Courier New]
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[/FONT]Domestically developed advanced automotive technology is an important path to US export growth
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[*]GM has exported its domestically developed "Belt[/FONT][FONT=Calibri,Calibri]‐[/FONT][FONT=Calibri,Calibri]Alternator Hybrid" system to China to power the first Chinese hybrid vehicle [/FONT][FONT=Courier New,Courier New]
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[/FONT]Collapse of the auto industry would result in a devastating economic and competitive scenario for the nation[FONT=Calibri,Calibri].
- Risk of "Domino Effect" due to common supply base and overlapping dealer ownership.
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[*]Support enables the industry to bridge what is arguably one of the country’s most difficult economic periods and to weather a financial storm not of its own making. [FONT=Calibri,Calibri]
[*]U.S. credit freeze and essentially [/FONT]closed capital market resulting in a liquidity squeeze, [FONT=Calibri,Calibri]at a time when manufacturers’ [/FONT]cash flow from operations are devastated by plummeting consumer demand. [FONT=Calibri,Calibri]
[*]However, [/FONT]balance sheets are weakened due to restructuring costs, heavy pension and health care payments, [FONT=Calibri,Calibri]large product and technology investments.
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[*]Failure is not an option for the U.S. auto industry, nor for any of the three domestic automakers. [/FONT][FONT=Courier New,Courier New]
[*]o [/FONT]Failure of one automaker would trigger a domino effect on the supply chain and the finance subsidiaries and on other domestic automakers.Auto industry is a national asset and a critical economic component that runs straight through Main Street…[FONT=Calibri,Calibri]
[*]Almost [/FONT]4% of U.S. gross domestic product [FONT=Calibri,Calibri]is auto[/FONT][FONT=Calibri,Calibri]‐[/FONT][FONT=Calibri,Calibri]related and represents 10% of U.S. industrial production by value. [/FONT]One out of every 10 U.S. jobs [FONT=Calibri,Calibri]is auto[/FONT][FONT=Calibri,Calibri]‐[/FONT][FONT=Calibri,Calibri]related, and auto workers receive [/FONT]$335 billion annually in compensation. [FONT=Calibri,Calibri]Specifically, GM, Ford and Chrysler account for roughly 70 percent of U.S. auto production and are estimated to support around [/FONT]five million jobs across all 50 states. [FONT=Calibri,Calibri]
[*]Over the last two decades, America’s domestic auto industry has [/FONT]invested nearly a quarter of a trillion dollars in the U.S., [FONT=Calibri,Calibri]including $10 billion alone last year. The industry also spends [/FONT]$12 billion annually in R&D [FONT=Calibri,Calibri]in U.S., which is among the top industries such as aerospace, medical equipment and computer/electronic industries. [/FONT]
[*]Supports maintenance and growth of supply base. [FONT=Calibri,Calibri]The auto industry [/FONT]purchased last year $156 billion in U.S. auto parts [FONT=Calibri,Calibri]supporting jobs in all 50 states and is the largest purchaser of U.S. steel, aluminum, iron, copper, plastics, rubber and electronic and computer chips.
[*]Enables auto industry to [/FONT]continue to meet extensive obligations[FONT=Calibri,Calibri]…amilies depend on a healthy industry that provides [/FONT]healthcare benefits to two million Americans and supports nearly 800,000 retirees and spouses with pension benefits. Enables thousands of dealers to survive and prosper[FONT=Calibri,Calibri]…hroughout towns in every state in America, [/FONT]over 20,000 automobile dealers [FONT=Calibri,Calibri]provide high paying jobs for over [/FONT]1 million employees. [FONT=Calibri,Calibri]
[*]Autos account for [/FONT]$690 billion, or about 20% of all U.S. retail sales[FONT=Calibri,Calibri].
[*]Auto sales generate more than [/FONT]$10 billion dollars of annual tax revenue [FONT=Calibri,Calibri](sales tax, registration fees, payroll taxes) which for many states is among their top sources for revenue.
[*]Many [/FONT]U.S. financial firms are staked to a healthy auto industry [FONT=Calibri,Calibri]because many have provided credit to manufacturers, hold their bonds and have financed the purchase of their vehicles. Millions of Americans also hold [/FONT]auto stocks and/or bonds that are held in mutual funds, 401(k) plans and pensions.