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Automotive Industry

Gore Vs. Bush

Automotive Industries, Oct, 2000 by James Cole

Get ready for the closest Presidential election since 1960--and its impact on the auto industry.

What has changed faster than public opinion about Fire-stone tires? The polling on who will be the next U.S. president. Just two months ago, at the University of Michigan's Traverse City conference, auto executives were confident not only in a George W. Bush victory, but also that he would expand the razor-thin Republican margin in the House and Senate.

Four weeks later, Al Gore jumped in popularity by almost 20 points in the polls, and leaped ahead in every critical automotive state.

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What has changed public opinion and how has the auto industry been caught in the crossfire? Three factors: the automotive and environmental records of the candidates, the importance of the electoral votes in auto swing states and the recent tire recalls.

Vice-President Al Gore is viewed by his detractors as the greatest threat the automotive industry has ever had. Much of this is due to his environmental statements in his 1992 book, Earth in the Balance, where his stated goal of eliminating the internal combustion engine within 25 years still rings loud in auto executives' ears. George W. Bush was born and raised in the oil industry and governor of Texas, where trucks rule and the Chevrolet Suburban has been dubbed the unofficial "state vehicle" for years.

Despite running neck-in-neck in national polls late in the campaign -- this is going to be a close election -- each candidate offers a dramatically different position on auto industry issues. In case you haven't yet decided which lever to pull come Election Day, here's where the two men who wish to be President stand on what counts for this industry -- and a look at who appears to have the advantage at the 11th hour.

Clean Air

Bush: Says the new federal Tier II standards that will require lower sulfur, cleaner-burning gasoline and cleaner cars are sufficient

Gore: Directed the Clinton Administration's push for tighter emissions regulations, including reducing sulfur in fuel.

How They're Playing In Public: Bush continues to be the target of environmental political attack ads, which show plenty of smog-heavy skies and note Houston's ranking as the most air-polluted city in the nation. His own party members have criticized his inability to bring Texas into compliance with federal pollution standards. Texas officials have considered aggressive reductions in evaporative emissions as an alternative to California LEVII standards to meet federally mandated clean air regulations. Their concern: protect sales of the largest light trucks and SUVs, which Texans love and are most vulnerable to fighter emissions regs.

Bush's response to these attacks has been weak. He contends that Houston does not have the air quality problems of Los Angeles -- this year, and cites other statewide pollution reduction efforts.

Advantage: GORE

Global Climate Change

Bush: Supports continued research into the causes and impact of global warming and the development of new technologies to reduce greenhouse gas emissions.

Gore: Leading proponent for decreasing all pollutant and greenhouse gases.

Kyoto Protocol

Bush: Opposes it, claiming it is ineffective, inadequate and unfair to America. Bush says the agreement, which the U.S. has not signed, exempts 80 percent of the world, including major population centers such as China and India, from compliance.

Gore: Supported full implementation until labor and trade pressures forced him to stop short of official endorsement. Supports ensuring that developing nations comply.

Gas Prices, Oil Dependency

Bush: As governor of a major oil-producing state and head of the first presidential ticket of two oil men (VP running mate Dick Cheney is also in the oil business), Bush walks apolitical tightrope here -- particularly in the Northeastern U.S. states now bracing for higher heating oil prices this winter.

Bush's only policy request during his father's 1988-92 administration was to suggest that George Sr. was making a mistake by favoring "cheap energy" -- a stance unpopular in oil states. He suggested his father call for a "Cleaner America" by announcing that the government fleet would be converted to natural gas or farm-product-based fuels. President Bush later adopted a law providing government vehicle fleets using natural gas with tax credits.

Gore: Has preached reducing America's dependence on oil for the long term by finding alternative energy sources in America. As a supporter of PNGV, Gore says he'll work closely with industry and labor to bring cleaner vehicles. He supports tax credits for purchase of hybrid-electric vehicles, believing credits will help drive mass production, thus lowering hybrid prices.

How They're Playing In Public: Gore is asking voters who they want fighting for lower fuel prices -- someone with no clear ties to the oil industry or two Texas oil billionaires.

Bush claims that Gore doesn't have a national policy to reduce energy prices or the U.S. dependence on foreign oil. In reality, neither does Bush. Furthermore, he's had to deflect allegations that the oil industry raised fuel prices in the Midwest this spring.

Automotive Industry

Gore Vs. Bush

Automotive Industries, Oct, 2000 by James Cole

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