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REACTION TO HR.5100: BILL'S AUTO QUOTA WOULD SACRIFICE AMERICAN JOBS, CONSUMERS' POCKETBOOKS TO PROTECT BIG THREE MARKETSHARE

REACTION TO HR.5100: BILL'S AUTO QUOTA WOULD SACRIFICE AMERICAN JOBS,
 CONSUMERS' POCKETBOOKS TO PROTECT BIG THREE MARKETSHARE
 WASHINGTON, May 19 /PRNewswire/ -- The American International Automobile Dealers Association issued the following:
 The House Democratic leadership has introduced legislation (HR.5100) that "is an attempt to reward the poor performance of the Big Three automakers in the marketplace with seven years of guaranteed profits and marketshare," said Walter E. Huizenga, president of AIADA. "Is this nation really prepared to sacrifice thousands of American manufacturing and sales jobs and the pocketbooks of American consumers for what has been a fundamental problem of Big Three management and competitiveness?"
 The statement by Huizenga came at a press conference at the U.S. Capitol today. Huizenga led 1,000 import auto dealers from the around the United States in a day-long lobbying effort against HR.5100.
 While a Japanese import car quota already exists, the bill would, for the first time, limit U.S. production of Japanese nameplate automobiles as well. "By restricting imports and U.S. production, the bill would make a mockery of the U.S.' commitment to free markets and investment," Huizenga said. "The U.S. government would be throwing thousands of Americans out of work to save jobs of other Americans, solely on the basis of company ownership." More than 400,000 Americans work in the international automobile industry, of which 45,000 are manufacturing.
 This legislation seriously threatens future job-creating foreign investment in the United States and the investment of American companies overseas. "HR.5100 sends a message to foreign investors that they are not welcome in the U.S. and, at the same time, sets a precedent that could be used in turn to restrict U.S. production overseas," Huizenga said.
 In the 1980s, the "voluntary" restraints cost middle class American consumers $1,700 per import sold and $1,100 per domestic sold. This legislation will again generate billions in profits for the Big Three at great expense and hardship to American consumers. "We should learn from the mistakes of the voluntary restraints in the 1980s, not repeat them in the 1990s," Huizenga said.
 The bill requires government approval of Big Three investment, pricing and other corporate decisions to maintain the quotas. "The bill is not a serious attempt at problem-solving legislation," Huizenga said. "This legislation is an admission to the fact that the restraints of the 1980s were no solution for the fundamental Big Three management and competitiveness problems. In fact, the quotas only exacerbated the problems and prolonged the day of reckoning. Government management of this industry would be a catastrophe."
 AIADA is the trade association of America's international automobile dealers, representing more than 10,000 American businesses selling and servicing world class automobiles.
 -0- 5/19/92
 /CONTACT: Joe Shafran of the American International Automobile Dealers Association, 202-544-1610/ CO: American International Automobile Dealers Association ST: District of Columbia IN: AUT SU: LEG


TW -- DC011 -- 1922 05/19/92 14:32 EDT
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Publication:PR Newswire
Date:May 19, 1992
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