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Ford CEO urges US Congress to offer fuel-saving tax cuts

Ford Motor Co chairman and CEO Bill Ford urged the US Congress on Tuesday to offer a package of tax incentives to make the US less dependent on foreign oil and to drive innovation in the struggling domestic auto industry.

Ford, during a speech he made in Washington, urged Congress to "dramatically increase" tax credits for research and development of alternative vehicles and to consider tax incentives to help US manufacturers modernize their plants.

He also urged investments in training programs for US workers, the encouraging of consumers to buy fuel-saving vehicles and partnerships to build an infrastructure of gasoline stations offering ethanol.

"Now, more than ever, I believe we must take action. If we put our heads together and keep in mind our shared interest in America's future, I'm confident that we can innovate our way toward the right solutions," Ford said.

Ford had "a productive set of meetings" with senior White House officials later in the day, spokesman Ed Lewis said. The discussions involved advanced vehicle technologies and ways Ford can help the country move toward energy independence, Lewis said.

In September, Ford urged US President George W. Bush to convene an energy summit with automakers, suppliers, energy companies, consumers and the government "to discuss our nation's energy security and our role in helping find a solution."

Lewis said the concept of a White House summit was still under review.

White House spokesman Allen Abney declined comment on the meeting.

Ford and other US automakers have been hit hard by increased competition from Asia, steep health care expenses and high costs for raw materials.

The automaker reported a third-quarter loss of US$284 million last month. Ford said last week it expects to eliminate about 4,000 white-collar jobs in North America early next year as part of that restructuring plan.

Moody's Investors Service said on Tuesday it may lower Ford's credit rating deeper into "junk" status because of weak demand for full-size trucks and sport utility vehicles.

Moody's has cut Ford's debt to a Ba1 rating, its highest non-investment grade rating, in August. The agency said that Ford's shipments of full-size trucks and SUVs, the company's longtime cash cows, fell by 30 percent to 40 percent in September and last month.
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