US car firms have urged President Bush to help them improve their global competitiveness, while insisting they do not want a government bailout. Mr Bush met bosses from DaimlerChrysler Ford and GM, all struggling against Asian rivals, to discuss concerns over growing imports and health costs. The companies, which spend more on health costs than on steel, want action to combat the weak Japanese yen.
This has made Japanese vehicles more attractive than US models, they say. "We told the president that we are very willing to make difficult decisions to transform our businesses to compete successfully, but we are not in a position to counter the effects of an excessively weak yen," the firms said in a joint statement. In contrast, GM and Ford have been over-reliant on gas guzzling sports utility vehicles (SUVs) US car firms have been hit by the high cost of paying for the health care costs of their retired workforce, under agreements with the trade unions negotiated many years before.
Both GM and Ford are undergoing significant restructuring plans, involving job reductions and plant closures, in a bid to save costs, after reporting massive losses. "The question was asked whether we are interested in a bailout and, absolutely not, because we really believe that the action starts with us," he told reporters.
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