Statement by VDA-President Bernhard Mattes at the Public Hearing of the U.S. Department of Commerce on the Section 232 National Security Investigation of Imports of Automobiles and Automotive Parts

Berlin (ots) - First of all, let me thank you for giving us the
opportunity to speak today to this distinguished audience and explain
the perspective of the German Association of the Automotive Industry,
representing more than 620 companies - manufacturers of cars, vans,
trucks, trailers, and automobile parts.

Personally, I have a long transatlantic history. For many years I
had the privilege to head Ford's operations in Germany.

At Ford I learned about the responsibility that we share about the
deep and longstanding ties that bind the automobile industry on both
sides of the Atlantic. Instead of harming the United States' national
security, the German automotive industry has proven to be an integral
and vital part of the US economy.

Since the last recession, the US industry has experienced almost a
decade of sales growth and growing employment in formerly deprived
regions and this is not least because of German automobile
manufacturers' investments in the United States.

Today, our members - manufacturers as well as suppliers - operate
more than 300 plants in the US. We produce more than 800.000 cars
"Made in the USA". We create over 100.000 high quality jobs - and
this is in production only, with many more in supply services. In
total, German companies are the fourth-largest foreign employer in
the US and account for almost 10 percent of the total 6.8 million
jobs created by foreign companies, with almost one out of every five
German-created jobs being in the automotive sector.

Up to now we have invested more than 30 billion USD and additional
investments of 5 billion USD just in the next four years have already
been announced. For the German auto industry the US is not only a
significant production location but an important strategic market and
an export hub with more than 60 percent of our production being
exported.

All this contributes to American wealth, prosperity and jobs,
allowing this fantastic country's economy to grow.

Take communities like Spartanburg, South Carolina home of the
largest BMW production facility worldwide, Tuscaloosa, Alabama home
of Daimler; or the new VW manufacturing site in Chattanooga,
Tennessee: In these communities, we have created well-paid jobs.

And even more we help these communities thrive. It is about more
houses being built, supermarkets having more customers, the bakery at
the factory entrance and the many philanthropic activities our
associates undertake. We are part of the local and regional success
stories, part of the communities.

Education is another very important aspect. We initiated dual
education programs where our associates are trained on the job in
parallel to their attendance of theoretical engineering classes in
specialized training centers. We certify them and with enhanced
skills, they have a perspective for a successful future. We feel as
true American corporate citizens.

And we want to continue our commitment and contribution to the
wealth of American communities.

And let me be very clear: Companies in our industry are so deeply
intertwined that our fate is a common fate. Manufacturers heavily
rely on open markets, due to our integrated and interdependent supply
chains. We can either grow together - or fall together.

Additional tariffs will cut deeply into the tightly knit net
between our companies. They would threaten our ability to export
successfully out of the US and call future investment into question.
Tariffs on US products will not only harm exports, but undermine
competitiveness and strengthen other production locations with severe
negative effects on investment and employment in the US. This
scenario terrifies me - and things can be made worse by
countermeasures which other countries could take. Such a scenario,
rather than free trade between partners, is a risk to national
security. US national security relies on its economic performance.

Therefore, we share ideas of lowering and eventually abolishing
tariffs and other barriers to trade in the framework of a larger
agreement between Europe and the US. We would appreciate if you and
your partners in Brussels would proceed on this path. The EU and the
USA together account for 50 percent of world trade. In light of fast
growing new actors on the scene it is my firm conviction that we
should shape the future together.

Our companies, manufacturers and suppliers, are passionate about
and proud of their investment in the US. And let me add, we feel that
we are part of the American Dream - because what our members share is
passion and responsibility, bringing jobs, skills and prosperity to
the US and its people.

Thank you very much for your attention and the opportunity to
elaborate on our comments.

Pressekontakt:
Eckehart Rotter
VDA - Press Department
Tel.: +49 30 897842-120
E-mail: rotter@vda.de

Original-Content von: VDA Verband der Automobilindustrie e.V., übermittelt durch news aktuell