Of all that I have read on the topic of the ITC 421 “witch-hunt,” your ‘Red, White and Gray’ blog is the best of the best.
No BS, no rhetoric, just the facts and cold hard truth.
As a major player in this area and still severely handicapped by the last ITC/Titan/Steelworkers bogus attack on the OTR/Specialty Tire products from China, I applaud that an editor of a respected industry trade publication has the gumption to call it like it is.
What seems to be missing from the latest round of reporting on this topic is the confirmation from the ITC’s own document that the U.S.-based tire facilities are not going to make any changes in their “game plan” even if Mr. Obama’s office enacts anything close to the ludicrous recommendation made by the ITC.
Note from page 65:
“Finally, we find it telling that U.S. tire producers, with few exceptions, have indicated that subject imports. We are mindful that under section 421, a certified or recognized union or group of workers, which is representative of an industry has a right to file a petition and seek relief. We also recognize that industry views must be weighed with views of other interested parties, including the views of the workers, and together with all other relevant economic factors as appropriate under the record of each particular investigation. In doing so, we use our sound discretion to determine the weight to afford industry views and all other factors. In this investigation, we find the industry views of probative value in shedding light on the factors we must consider in our analysis. In particular, the fact that U.S. producers making the decisions about rationalizing the U.S. industry to fit the global tire marketplace reported that they were not materially injured by subject imports, and do not plan to make changes to operations if a remedy is granted, is entitled to significant weight in our analysis of whether there is a causal nexus between subject imports and the performance of the domestic industry.”
I also attached a report written by the same Steelworkers union in April 2007 regarding the plant closures of Conti-General plants in Mayfield and Charlotte. In this 20-page report there is not one single reference to China as a causal effect of the plant closures. They lay the blame for these closures as a result of poor management.
Given our industry knowledge, there is likely a lot of truth in the Steelworkers comments about the problems at General Tire, but it seems that the Steelworkers have no problem changing their logic to fit the result that they wish to accomplish, which is in this case to jump on the China bashing wagon.
Being Canadian perhaps I have the luxury of tossing a few stones over the border at our neighbours south of the border, but what happened to the USA? When the going gets tough, the tough get going, that can-do attitude, American ingenuity, drive, etc.. has been replaced by a mentality of entitlement – Who can I blame for my problems?, What’s in it for me, me, me!
Perhaps it is just the logical progression of the next generation of a wealthy society, but without a strong leadership that is prepared to kick its constituents in the butt when necessary, the future doesn’t bode well regardless of the 421 tire outcome.
Bob Sherkin
GPX
