Alabama governor defends state from UAW criticism (headline sucks) [View All]

[DainBramaged]

Gov. Bob Riley fired back Thursday at the United Auto Workers, which cited Alabama's huge incentives to foreign automakers as an example of why the federal government should approve loans for troubled U.S. car companies.

Speaking in Detroit earlier in the day as he argued for Congress to provide loans to domestic car manufacturers, UAW President Ron Gettelfinger said Alabama had provided about $693 million in incentives to lure Mercedes-Benz, Honda, Hyundai and Toyota to the state.

"It just seems odd to us that we can help the financial institutions in this country, that we can offer incentives to our competition ... but at the same time we are willing to walk away from an industry that is the backbone of our economy," he said.

Riley said every state offers incentives to attract major economic projects, "so that's obviously not the issue."

"The real reason companies keep locating in Alabama is the quality of our work force and the exceptional products they make," Riley said in a statement. "With all due respect to Mr. Gettelfinger, great workers making great products is a proven recipe for success in Alabama, and it doesn't require a bailout."

Riley didn't mention another reason car companies like Alabama -- labor has yet to succeed in organizing workers at any of the state's auto plants.

Mercedes-Benz became the first automotive company to locate in Alabama when it received $253 million in incentives and selected Tuscaloosa County for its first U.S. assembly plant in 1993.

Since then, Honda and Hyundai opened vehicle factories in Talladega County and Montgomery County, respectively, and Toyota built an engine factory in Huntsville.

Gettelfinger singled out Mercedes-Benz for criticism, saying the German company received particularly lavish incentives.

"We can support our competition but we can't support an industry that's in need," said Gettelfinger.

Sen. Richard Shelby, R-Ala., this week said bankruptcy was the best option for American car companies and predicted they wouldn't turn around operations until top executives are removed.

http://www.businessweek.com/ap/financialnews/D94IUFF80.htm