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Politics : Don't Blame Me, I Voted For Kerry -- Ignore unavailable to you. Want to Upgrade?

To: Mannie who wrote (41054)	8/6/2004 3:42:29 PM
From: Mannie	Read Replies (2) \| Respond to of 81568

BOOSTING FUEL EFFICIENCY: Kerry: Billions for car industry Plan's goal: Cut dependence on oil; keep U.S. jobs July 29, 2004 BY JEFFREY MCCRACKEN AND RUBY L. BAILEY FREE PRESS STAFF WRITERS BOSTON -- Framing it as a national security and foreign-policy concern rather than an environmental one, Sen. John Kerry in his much-anticipated speech tonight is expected to call on the nation and auto industry to support a $10-billion plan to dramatically reduce America's dependence on Middle Eastern oil. As Kerry made a triumphant arrival in Boston and his running mate, John Edwards, accepted the party's nomination, Democrats said Kerry is likely to avoid mention of increasing mandatory fuel-efficiency standards for the auto industry -- a topic that typically angers automakers and the UAW alike. Instead, he will focus on offering automakers billions of dollars over 10 years to alter their auto plants to build more fuel-efficient vehicles. The catch is that the money could only go toward new or renovated auto-assembly plants in the United States, a proposal specifically designed to appeal to the auto industry and workers in Michigan, an important swing state for both Kerry and President George W. Bush. While Kerry insiders and others familiar with the proposal said he likely won't go into great detail in his speech to the Democratic National Convention in Boston, Kerry's plan also calls for tax credits or incentives for consumers to purchase fuel-efficient vehicles, the creation of an institute to develop hydrogen-based fuels and an unspecified increase in corporate average fuel economy, or CAFE, standards. More details will come, a Kerry policy adviser told the Free Press. Past Democratic candidates have pushed to increase CAFE standards or to reduce U.S. gasoline consumption, but usually justified it as an environmental issue. This time, Kerry is tying oil dependence to international security and the war in Iraq as part of the debate about how to win the war on terrorism. "John Kerry believes there is a need to reduce our dependence on foreign oil as a security matter and as an economic one. At the same time, he wants to make sure there are lots of incentives for businesses and consumers to bring that about," said Sarah Bianchi, the Kerry campaign's national policy director. She said the money would come from Kerry's plan to roll back "Bush tax cuts to the wealthy." Currently, buyers of hybrid vehicles such as the Toyota Prius can get a one-time $1,500 tax deduction. The deduction disappears completely after 2006. Detroit's automakers and the UAW have chafed over previous attempts to increase CAFE standards -- arguing that such measures hurt General Motors Corp., Ford Motor Co. and the Chrysler Group more than their foreign rivals because Detroit builds so many gas-hungry pickups and SUVs. Although Detroit's automakers declined to comment on the Kerry proposal -- "We have been told specifically not to touch anything about the presidential election," said one automotive spokesperson -- the UAW came out in support of the plan. "I think it's a great plan. It sends a signal to our membership and to the automakers that John Kerry is serious about keeping automotive jobs in the United States," said Alan Reuther, UAW legislative director. Citing fears of U.S. job losses, the UAW has resisted some attempts to raise CAFE standards, including one by Kerry and Arizona Sen. John McCain in 2002 to raise them from 24 m.p.g. to 36 m.p.g. by 2015. "What I like is that Kerry is focused on ensuring the advanced technology is built in this country," said Reuther. Pennsylvania Gov. Ed Rendell previewed Kerry's energy plans to delegates Wednesday. "There are thousands of people who are choosing to drive new hybrid cars that get great gas mileage. Yet, the waiting lists stretch for six months -- with spots on those list being auctioned on eBay for $500 or more. Yet where are these cars being made? In Korea and Japan. "To make sure those jobs are created here, John Kerry will invest $10 billion in tax incentives for American car manufacturers to convert factories to build these cars of the future right here in the United States and tax credits for consumers to purchase those vehicles." Kerry's Michigan campaign spokesman, Rodell Mollineau, said Kerry will not mention CAFE standards specifically. Mollineau added Kerry's discussion of reducing dependence on foreign oil will be "only a few sentences in a speech of 45 minutes to an hour." Rep. John Dingell said Wednesday that Kerry "is a guy who is not stupid enough to throw away the votes of the states" with automobile plants. Michigan Republican Party spokesman Matt Davis said Kerry's desire to raise fuel-efficiency standards will cost Michigan jobs, even with $10 billion for automakers. "It would kill SUV production," said Davis. "It translates into Michigan jobs. No amount of government financing can abate that." Automotive insiders said Kerry's proposal sounded good in concept, but might not be practical because automakers and the government might spend billions converting plants to create automobiles -- like hybrid vehicles -- that don't turn out to be pragmatic or popular with consumers.