Democrats, Auto Chiefs Clash Over Industry's Direction

Senate Democrats lashed out at the three leading U.S. auto executives yesterday for fighting legislation to force improvements in vehicle gas mileage, warning that lawmakers are losing patience with the industry.

Sen. Thomas R. Carper of Delaware said Congress is tiring of the industry's argument that tougher fuel-economy rules would lead to plant closings and layoffs. Carper, whose state is losing a big Chrysler sport-utility vehicle plant, noted that the Big Three Detroit automakers have downsized significantly in the past two years.

"For the better part of 20 years, you've lost market share. There have been plant closings, and you've lost money," Carper told the auto executives. "Just keep in mind: For 20 years, we've been patient."

The Democratic senators' criticism was directed at chief executives of the domestic auto industry's three top automakers -- G. Richard Wagoner Jr. of General Motors, Alan R. Mulally of Ford and Tom LaSorda of Chrysler -- during a Capitol Hill lunch organized by Sen. Debbie Stabenow of Michigan. Ronald A. Gettelfinger, president of the United Auto Workers union, also attended.

Since winning a congressional majority in November, Democrats have been pushing automakers to accept higher fuel-economy standards. Political momentum toward a change in corporate average fuel economy standards has intensified.

Next week the Senate is expected to take up a proposal to boost fuel efficiency standards to an average of 35 miles per gallon by 2020 and then continue to raise requirements by 4 percent a year from 2020 through 2030. Stabenow and Carl M. Levin, also a Democrat from Michigan, are working on alternative legislation. Senate staffers say they expect a floor fight over the legislation.

Sen. Byron L. Dorgan of North Dakota, who favors raising fuel-economy standards after years of voting against increases, said at yesterday's lunch that Congress is growing more willing to overrule the industry. "I think the issue is over," Dorgan told the auto executives. "I think you've lost that issue. I think your position is yesterday forever."

Ford's Mulally countered that the industry has made progress on vehicle efficiency over the years. He repeated the industry's position that it would prefer the National Highway Traffic Safety Administration, rather than Congress, set any new fuel efficiency rules.

The auto chiefs also contended that Detroit has been making gains in factory productivity and vehicle quality, closing the gap with Japan. "Through a lot of hard work and investment, we've been willing to change," GM's Wagoner said.

The executives' trip to Washington was the latest in a campaign that began last year after President Bush tweaked the industry, saying Detroit could overcome its problems by building vehicles that were "relevant" to consumers.

The company chiefs have spearheaded the effort, appearing in March before a House energy panel and meeting with congressional leaders in May 2006 in a failed attempt to head off fuel economy legislation. They also have made two trips to the White House to meet with Bush, who has also called for higher fuel-economy standards.

Yesterday, opening statements by the auto chiefs barely touched on the fuel-economy debate. They asked senators to look for ways to slow escalating health-care costs and requested federal money for the industry to invest in biofuels and other advanced vehicle technology. They also urged lawmakers to confront South Korea and Japan over trade deficits and currency policies.

On trade, Dorgan and Sen. Bernard Sanders (I-Vt.) chastised the industry for its unswerving pro-trade position in Washington and for sending jobs to China.