May 12, 2009

Obama's "Buy American" Remarks Draw Ire

During his press conference on the bankruptcy and bailout of Chrysler, President Obama urged American consumers to “buy an American car.” The remark didn’t sit very well with the import carmakers who sell vehicles in the American market, and the suggestion immediately drew a statement of polite dissension from the Association of International Automobile Manufacturers, a trade association representing 13 international motor vehicle manufacturers who account for 43 percent of all passenger cars and light trucks sold annually in the United States.

“The Association of International Automobile Manufacturers (AIAM) applauds the steps taken by President Obama to strengthen the auto industry by reviving and realigning two of America's iconic car companies, GM and Chrysler,” said Michael J. Stanton, president of the association. “AIAM has not and does not oppose these efforts. We strongly believe, however, that American consumers should be encouraged to buy vehicles that best meet their individual needs and concerns with respect to price, safety and environmental performance.”

The statement also tiptoed around the implications of government support and government ownership of auto manufacturers, as could be the case with Chrysler and possibly General Motors, while other companies that build cars in the United States are independently owned and operated.

“As the government continues its vital role in the restructuring of historically important players in the U.S. auto market, we believe it is vital to retain and encourage a level playing field for all,” Stanton said. “It is competition that brings value and choice to American consumers, and that will ultimately help return these companies and our industry to a position of strength and profitability. Actions that lead to discrimination on the basis of company ownership will harm Americans who build and sell vehicles made in the United States by international automakers and undermine the long-term interests of our industry.”

AIAM member companies include Aston Martin, Ferrari, Maserati, Honda, Hyundai, Isuzu, Kia, Mitsubishi, Nissan, Peugeot, Subaru, Suzuki and Toyota.