MACKINAC 2007: Bill Ford advocates for energy policy, new biz tax
Source: Crain's Detroit Business
By: Jennette Smith
Published: 3:54 pm, May 31, 2007
Bill Ford Jr. urged swift action on a variety of fronts during keynote remarks Thursday including national energy policy, a new business tax plan in Michigan and implementation of Road to Renaissance plans to transform the state economy.
Ford, executive chairman of Ford Motor Co. used his address at the Mackinac Policy Conference as an opportunity to offer his view on a variety of economic issues, including thoughts on what Michigan can do to capture opportunities even as the automotive industry is going through a wrenching restructuring.
“Our industry is restructuring, causing plant closings, layoffs, rising unemployment and a falling tax base,” he said. “At the same time, legitimate concerns about global warming, energy security and the cost of gasoline have created a rush toward arbitrary and poorly conceived solutions.
“Clearly, it’s up to automakers to address the challenges we face, and that’s what we are doing. But the issues confronting us are bigger than any one industry, and they impact everyone in Detroit and the state of Michigan. It doesn’t matter if the leak is in someone else’s boat; we are all going to sink or float together.”
On energy policy, Ford said that while it is good news that many people finally understand the urgency and the business case for environmental stewardship, “no one person, company or industry can solve these problems by themselves.
“The automobile industry is getting a lot of attention in regard to CO2 emissions and global warming. But the fact is cars and trucks contribute about 20 percent of CO2 emissions in the U.S. and 10 percent of the worldwide total. We need to do our part as an industry, but we are only one piece of a much bigger puzzle.”
Ford called for a national consortium of auto and energy companies, utilities, nongovernmental entities, government agencies, universities and others to develop a more integrated plan. Europe, for example, does not have a perfect plan but has a more integrated framework for action, including tax incentives and the beginnings of a carbon trading program, Ford said. And policies target consumer and industry behaviors, he added.
“We are not shirking our duty, or asking for handouts, just relief from uncertainty and from a fragmented patchwork of arbitrarily set standards,” Ford said.
On the Michigan Business Tax plan, Ford offered strong support.
“This plan promotes a more competitive tax structure for manufacturers in Michigan,” he said. “It broadens the base of business taxpayers by including out-of-state companies who sell their products and services in Michigan but don’t invest here. It also encourages the retention of research and development in Michigan through tax credits.”
Michigan needs to pounce on opportunities for its R&D industry to play a part in alternative-energy industry growth, Ford said. The Road to Renaissance Plan from Detroit Renaissance has the organization, resources and detailed planning and vision needed, Ford said.
“Frankly, too often in the past lofty goals were announced without the resources or careful planning to make them happen,” he said. “Road to Renaissance is different.”
Ford also credited his cousin Edsel Ford for leading the One D collaborative effort that incorporates Road to Renaissance planning.
“We can transform ourselves into a leading center of technical innovation and sustainable mobility, but only if we act swiftly and boldly,” Ford said. “Before our engineers and scientists move somewhere else to find better jobs, before our tax base is too small to support a first-rate education system, before our children and grandchildren leave our state in search of greater opportunity … ”
“If we don’t change ourselves, the world will do it for us.”
Ford said he’s convinced Michigan can make the case for creating the next generation of high-tech jobs. The intellect and university resources are here. When Silicon Valley start-ups in environmental technology talk about planning sales offices in Detroit, Ford’s reaction is, “Why settle for just having sales offices? Why not encourage the development of research and development centers here?”
During the question-and-answer portion of his remarks, Ford said another problem plaguing the automotive industry is perceptions abut quality. Even though American products have proven on par with Toyota, for example, there’s a perception problem with the average American.
“It’s going to require us to be bold and up-front,” Ford said.
On mass transit, Ford said Ford Motor Co. would like to be helpful in crafting a solution and believes mass transit and auto makers can co-exist.
“There’s room for both,” he said.
On upcoming United Auto Workers negotiations, Ford said health care costs are a big concern.
“I’m not suggesting national health care, but we need a change,” he said. “It’s a broken system.”
Larry Alexander, president and CEO of the Detroit Metro Convention & Visitors Bureau, said Ford’s comments were direct and specific, and applauded the mass transit support.
Richard E. Dauch, chairman and CEO of American Axle & Manufacturing, said Ford Motor Co. has the leadership, product plans and energy policy stance it needs to have. Dauch said he agreed the U.S. government needs a comprehensive energy policy overhaul.
“Bill Ford is very crucial to our industry,” he said. “We’re all rooting for him.”
By: Jennette Smith
Published: 3:54 pm, May 31, 2007
Bill Ford Jr. urged swift action on a variety of fronts during keynote remarks Thursday including national energy policy, a new business tax plan in Michigan and implementation of Road to Renaissance plans to transform the state economy.
Ford, executive chairman of Ford Motor Co. used his address at the Mackinac Policy Conference as an opportunity to offer his view on a variety of economic issues, including thoughts on what Michigan can do to capture opportunities even as the automotive industry is going through a wrenching restructuring.
“Our industry is restructuring, causing plant closings, layoffs, rising unemployment and a falling tax base,” he said. “At the same time, legitimate concerns about global warming, energy security and the cost of gasoline have created a rush toward arbitrary and poorly conceived solutions.
“Clearly, it’s up to automakers to address the challenges we face, and that’s what we are doing. But the issues confronting us are bigger than any one industry, and they impact everyone in Detroit and the state of Michigan. It doesn’t matter if the leak is in someone else’s boat; we are all going to sink or float together.”
On energy policy, Ford said that while it is good news that many people finally understand the urgency and the business case for environmental stewardship, “no one person, company or industry can solve these problems by themselves.
“The automobile industry is getting a lot of attention in regard to CO2 emissions and global warming. But the fact is cars and trucks contribute about 20 percent of CO2 emissions in the U.S. and 10 percent of the worldwide total. We need to do our part as an industry, but we are only one piece of a much bigger puzzle.”
Ford called for a national consortium of auto and energy companies, utilities, nongovernmental entities, government agencies, universities and others to develop a more integrated plan. Europe, for example, does not have a perfect plan but has a more integrated framework for action, including tax incentives and the beginnings of a carbon trading program, Ford said. And policies target consumer and industry behaviors, he added.
“We are not shirking our duty, or asking for handouts, just relief from uncertainty and from a fragmented patchwork of arbitrarily set standards,” Ford said.
On the Michigan Business Tax plan, Ford offered strong support.
“This plan promotes a more competitive tax structure for manufacturers in Michigan,” he said. “It broadens the base of business taxpayers by including out-of-state companies who sell their products and services in Michigan but don’t invest here. It also encourages the retention of research and development in Michigan through tax credits.”
Michigan needs to pounce on opportunities for its R&D industry to play a part in alternative-energy industry growth, Ford said. The Road to Renaissance Plan from Detroit Renaissance has the organization, resources and detailed planning and vision needed, Ford said.
“Frankly, too often in the past lofty goals were announced without the resources or careful planning to make them happen,” he said. “Road to Renaissance is different.”
Ford also credited his cousin Edsel Ford for leading the One D collaborative effort that incorporates Road to Renaissance planning.
“We can transform ourselves into a leading center of technical innovation and sustainable mobility, but only if we act swiftly and boldly,” Ford said. “Before our engineers and scientists move somewhere else to find better jobs, before our tax base is too small to support a first-rate education system, before our children and grandchildren leave our state in search of greater opportunity … ”
“If we don’t change ourselves, the world will do it for us.”
Ford said he’s convinced Michigan can make the case for creating the next generation of high-tech jobs. The intellect and university resources are here. When Silicon Valley start-ups in environmental technology talk about planning sales offices in Detroit, Ford’s reaction is, “Why settle for just having sales offices? Why not encourage the development of research and development centers here?”
During the question-and-answer portion of his remarks, Ford said another problem plaguing the automotive industry is perceptions abut quality. Even though American products have proven on par with Toyota, for example, there’s a perception problem with the average American.
“It’s going to require us to be bold and up-front,” Ford said.
On mass transit, Ford said Ford Motor Co. would like to be helpful in crafting a solution and believes mass transit and auto makers can co-exist.
“There’s room for both,” he said.
On upcoming United Auto Workers negotiations, Ford said health care costs are a big concern.
“I’m not suggesting national health care, but we need a change,” he said. “It’s a broken system.”
Larry Alexander, president and CEO of the Detroit Metro Convention & Visitors Bureau, said Ford’s comments were direct and specific, and applauded the mass transit support.
Richard E. Dauch, chairman and CEO of American Axle & Manufacturing, said Ford Motor Co. has the leadership, product plans and energy policy stance it needs to have. Dauch said he agreed the U.S. government needs a comprehensive energy policy overhaul.
“Bill Ford is very crucial to our industry,” he said. “We’re all rooting for him.”
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