Collaboration Key to Auto Industry-Government Relations

Posted 02/19/2010
Collaboration will be a key factor in the future relationship between the auto industry and the U.S. government, said Michael Vitek, vice president of Mercedes-Benz Technology North America, at a February 17 conference hosted by UMTRI's Automotive Analysis Division.

The conference, Understanding the New Role of Government in the U.S. Auto Industry, was held at the University of Michigan and sponsored by Mercedes-Benz Technology North America.

"The government role is expanding, but we feel that there has to be a partnership," said Vitek. "Without collaboration we won't be successful as an industry." He added that technology is another key factor, and the government's new role will also encompass innovation (providing direction and funding) and commercialization (providing funding to develop working technology).

U.S. Rep. John Dingell (D-MI) was among the speakers to address conference attendees. He noted that the complex relationship between the government and the auto industry is [now] characterized by government recognition of the auto industry as vital to the nation, the workforce, and the economy as well as the need for safe, fuel-efficient, clean vehicles.

The relationship between the two entities will evolve, Dingell said, adding that the government should do more to support suppliers, as well as implement a health-care plan that reduces associated costs for the auto industry.

[Pictured: U.S. Rep. John Dingell at the Feb. 17 conference.]

Other speakers at the daylong conference included Walter McManus, head of UMTRI's Automotive Analysis Division, who presented results from studies that analyzed customers' willingness to pay for fuel economy and the projected effects on industry profits.

Patrick Davis, program manager of vehicle technologies at the U.S. Department of Energy (DOE), highlighted automotive-related research initiatives supported by the DOE.

[Pictured: Pete Hardigan of Ford Motor Company and Patrick Davis of the U.S. Dept. of Energy.]

Christopher Grundler, deputy director of the Office of Transportation and Air Quality in the U.S. Environmental Protection Agency (EPA), discussed the expanded role that the EPA is taking in regulating greenhouse gases and fuel economy.

Bob King, vice president of United Auto Workers, discussed the new role that labor is playing in the auto industry, and Itay Michaeli of Citi Investment Research explained how financial analysts view the new government-industry relationship.

UMTRI assistant research scientist Bruce Belzowski moderated the conference, which was part of the Automotive Analysis Division's Focus on the Future conference series. The next event in the series is scheduled for April 22, 2010.

For more information on upcoming events, see Automotive Analysis Division.

[Pictured at top: Michael Vitek of MBtech North America addresses conference participants.] Photos by Joyce Daniels, UMTRI