Ford calls for summit on energy - 09/23/05 Error processing SSI file
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Friday, September 23, 2005

Ford calls for summit on energy

The automaker's CEO wants Bush to hold talks on how the auto industry can help fix fuel issues.

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WASHINGTON -- One day after committing to increase production of hybrid vehicles tenfold, Ford Motor Co. Chairman and CEO Bill Ford Jr. asked President Bush to convene a summit to discuss the nation's energy issues and auto industry's role in finding a solution.

In a letter to the White House, Ford outlined the steps the Dearborn automaker is taking to sell more hybrids and flexible-fuel vehicles. Ford told Bush that his company would continue to "work proactively" with the administration to set new fuel economy standards through the National Highway Traffic Safety Administration.

Ford supported the Energy Policy Act that Bush recently signed into law, but there's even more that should be done, Ford said.

"These are steps that we can, and will, take in the short term," Ford wrote. "The new energy law is a strong foundation for these efforts. But this is only the beginning. As you know, none of us can do this alone. There is no one magic bullet. But if we all work together -- automakers, suppliers, fuel providers, consumers and state and federal government -- I am confident we can overcome the great energy challenges facing our country."

Ford's proactive move stands in stark contrast to recent efforts of Detroit's automakers to stifle debate on improving fuel economy. As Congress discussed an energy bill over the last four years, the auto industry successfully fought to delete fuel economy increases from the legislation. This year, though, the National Highway Traffic Safety Administration did propose raising fuel economy requirements for light trucks.

Prior to 2001, the auto industry lobbied successfully for six years to prevent the U.S. Department of Transportation from even studying an increase in fuel economy standards.

Now, with rising gas prices, a growing public awareness of oil imports coming from the Middle East, and gasoline supply issues in the wake of Hurricane Katrina, the nation is facing an urgent need to do more, said Ziad Ojakli, Ford's group vice president of corporate affairs.

"We're in the midst of the perfect energy security crisis," Ojakli said. "While there have been some concrete improvements, there's more that we can do."

White House spokesman Allen Abney said the Bush administration had not yet reviewed the letter and couldn't offer any specific response to the call for a energy summit. But he said President Bush has made energy a top priority, helping shape the energy bill that was signed into law this summer, which included tax credits for consumers who buy alternative fuel vehicles.

"The president agrees that the nation's energy policy is a priority, as is evident by the steps we've already taken," Abney said.

But not everyone is optimistic about the chances of success of such an energy summit. David Friedman, research director of clean vehicles for the Union of Concerned Scientists in Washington, said Vice President Dick Cheney worked with a similar-sounding task force four years ago that ended up downplaying conservation in the national energy policy. Friedman was disappointed Ford had not made any specific commitment to higher fuel economy standards.

"This is more of the Bill Ford that we expected to see and have been hoping to see," Friedman said. "But you've got to take some concrete steps, too."

Eron Shosteck, spokesman for the Alliance of Automobile Manufacturers, said the industry group had not yet reviewed Ford's letter, but many automakers are looking at changing their product plans in the face of higher gas prices.

"I can tell you the companies are all fiercely committed to doing their part to achieve United States energy independence," he said.

You can reach Jeff Plungis at (202) 662-8735 or jplungis@detnews.com.


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