I
103D CONGRESS
1ST SESSION
H. R. 1870
To strengthen the competitiveness of the United States motor vehicle sector
by creating a Motor Vehicle Industry Competitiveness Commission.
IN THE HOUSE OF REPRESENTATIVES
APRIL 27, 1993
Mr. LEVIN introduced the following bill; which was referred jointly to the
Committees on Ways and Means, Energy and Commerce, Foreign
Affairs, and the Judiciary
A BILL
To strengthen the competitiveness of the United States motor
vehicle sector by creating a Motor Vehicle Industry Com-
petitiveness Commission.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Motor Vehicle Industry
Competitiveness Act’’.
SEC. 2. CONGRESSIONAL FINDINGS.
The Congress finds the following:
HR 1870 IH
(1) A strong United States motor vehicle sector
is critical to our international competitiveness and to
the health of our industrial base.
(2) The United States motor vehicle and motor
vehicle parts industries directly employ 1,200,000
workers in high-paying jobs, and indirectly support
another million jobs in supplier industries.
(3) The United States motor vehicle industry
accounts for 4.5 percent of the Gross National Prod-
uct, 77 percent of the total consumption of the natu-
ral rubber industry, 67 percent of the lead industry,
40 percent of the machine tool industry, 25 percent
of the glass industry, 20 percent of the semiconduc-
tor industry, 18 percent of the aluminum industry,
and 12 percent of the steel industry. The United
States motor vehicle industry also accounts for 12.4
percent of all corporate research and development.
(4) United States motor vehicle makers have
experienced serious financial difficulty over the past
several 
years, 
with 
the 
Big 
Three 
losing
$8,000,000,000 in 1991 alone. Hundreds of United
States motor vehicle parts companies have gone out
of business in the last several years, and tens of
thousands of United States motor vehicle parts
workers have lost their jobs.
HR 1870 IH
(5) The problems facing the United States
motor vehicle sector are reflected in the trade deficit
of 
that 
sector 
with 
Japan, 
which 
exceeded
$30,000,000,000 in 1991 and accounted for almost
half of the entire United States world trade deficit.
(6) Despite years of negotiations through the
MOSS process, United States motor vehicle parts
companies have been excluded from the Japanese
market, where they account for less than 1 percent
of all sales. This trade imbalance, which has been
caused in part by Japanese structural barriers such
as keiretsu, poses a threat to the health of the Unit-
ed States motor vehicle parts industry, as well as to
the many United States industries that supply the
motor vehicle parts industry.
(7) High health care costs have a significant
impact of the competitiveness of United States
motor vehicle makers. The Big Three must pass
along to consumers as much as $700 more per car
in health care costs than Japanese companies.
(8) Worldwide excess capacity in the motor ve-
hicle industry of several million units has put further
pressure on the United States market and the Unit-
ed States motor vehicle industry.
HR 1870 IH
(9) Clear, broad-based government economic,
trade, health and United States tax policies are
needed to improve the competitiveness of the United
States motor vehicle sector and to stem further job
losses in these industries.
SEC. 3. MOTOR VEHICLE INDUSTRY COMPETITIVENESS
COMMISSION.
(a) ESTABLISHMENT.—There is established the
Motor Vehicle Industry Competitiveness Commission
(hereinafter in this section referred to as the ‘‘Commis-
sion’’).
(b) FUNCTIONS.—
(1) INVESTIGATION AND STUDY.—The Commis-
sion shall make a complete investigation and study
of the financial condition of the domestic motor vehi-
cle sector, including the laws, regulations, and for-
eign trade barriers that pose impediments to its
competitiveness.
(2) POLICY RECOMMENDATIONS.—Based on the
results of the investigation and study required to be
conducted under paragraph (1), the Commission
shall recommend to the President and Congress
those policies that need to be adopted to—
(A) achieve the national goal of a strong
and competitive motor vehicle sector;
HR 1870 IH
(B) facilitate the sales of United States-
made motor vehicles and motor vehicle parts by
improving competitiveness at home and opening
markets abroad;
(C) reduce the motor vehicle sector trade
deficit with foreign countries, particularly
Japan;
(D) implement an industry-wide health
care plan that helps relieve the burden of exces-
sive health care costs on the motor vehicle and
motor vehicle parts industries; and
(E) promote job growth in the motor vehi-
cle sector.
(3) SPECIFIC ISSUES.—In carrying out para-
graph (1), the Commission shall specifically inves-
tigate and study the following:
(A) The current financial condition of the
motor vehicle industry and how the industry’s
financial condition is likely to change over the
next 5 years, including—
(i) the profits or losses likely to be
achieved by United States motor vehicle
sector manufacturers (which term, for pur-
poses of this Act, means motor vehicle
HR 1870 IH
manufacturers and motor vehicle parts
manufacturers) over the next 5 years, and
(ii) the market share gains or losses
likely to be achieved by United States
motor vehicle manufacturers in the United
States and key markets abroad over the
next 5 years.
(B) The foreign barriers to export or for-
eign investment by United States motor vehicle
sector manufacturers, especially in Japan.
(C) The extent to which health care costs
impede the competitiveness of United States
motor vehicle sector manufacturers.
(D) The extent to which the United States
tax laws impede the competitiveness of United
States motor vehicle sector manufacturers.
(E) Whether the Federal Government
should take any action with respect to United
States trade or antitrust laws to open foreign
markets to United States motor vehicle prod-
ucts, to open ‘‘transplant’’ facilities in the Unit-
ed States to United States motor vehicle parts,
or to make the United States motor vehicle sec-
tor more competitive.
HR 1870 IH
(F) Whether the policies and strategies of
the Federal Government have adequately ad-
dressed the competitiveness needs of the United
States motor vehicle industry.
(G) The potential impact of trade agree-
ments or trade negotiations on employment in
the United States industry.
(H) The impact on the competitiveness of
the United States motor vehicle industry of the
1989 Department of the Treasury ruling
classifying multipurpose vehicles as cars instead
of light trucks.
(I) The impact of agreements involving
other countries, including the European Com-
munity-Japan motor vehicle market-share ar-
rangement, on the competitiveness of the Unit-
ed States motor vehicle industry.
(J) Whether the Federal Government
should take any legislative or administrative ac-
tions to improve the financial conditions of the
United States motor vehicle industry.
(K) The extent to which the manufactur-
ing programs of the Federal Government, in-
cluding those at the National Institute of Tech-
nology, of the Department of Commerce, can be
HR 1870 IH
better utilized to make the United States motor
vehicle industry more competitive.
(c) MEMBERSHIP.—
(1) APPOINTMENT.—The Commission shall be
composed of 15 members as follows:
(A) 3 members appointed by the President.
(B) 3 members appointed by the Speaker
of the House of Representatives.
(C) 3 members appointed by the majority
leader of the Senate.
(D) 3 members appointed by the minority
leader of the House of Representatives.
(E) 3 members appointed by the Senate
Republican Leader of the Senate.
(2) 
QUALIFICATIONS.—Appointments 
under
paragraph (1) shall be made from among individuals
who are experts in motor vehicle trade and economic
policy, including individuals from organizations rep-
resenting United States motor vehicle sector manu-
facturers and employees of those manufacturers and
from the Federal, State, and local governments.
(3) TERMS.—Members shall be appointed for
the life of the Commission.
HR 1870 IH
(4) VACANCIES.—A vacancy in the Commission
shall be filled in the manner in which the original
appointment was made.
(5) PAY.—Members shall serve without pay.
(6) CHAIRMAN.—The Chairman of the commis-
sion shall be elected by the members.
SEC. 4. ADMINISTRATIVE PROVISIONS.
(a) STAFF ASSISTANCE FROM FEDERAL AGEN-
CIES.—Upon request of the Commission, the head of any
department or agency of the Untied States may detail any
of the personnel of that department or agency to the Com-
mission to assist it in carrying out its functions under this
Act.
(b) ADMINISTRATIVE SUPPORT SERVICES.—Upon
the request of the Commission, the Administrator of Gen-
eral Services may provide the Commission with the admin-
istrative support services necessary for the Commission to
carry out its functions under this Act.
(c) OBTAINING OFFICIAL DATA.—The Commission
may secure directly from any department or agency of the
United States information (other than information re-
quired by any statute of the United States to be kept con-
fidential by such department or agency) necessary for the
Commission to carry out its duties under this section.
Upon request of the Commission, the head of that depart-
HR 1870 IH
ment or agency shall furnish such nonconfidential infor-
mation to the Commission.
(d) REPORT.—Not later than six months after the
date on which the initial appointment of the members of
the Commission is completed, the Commission shall trans-
mit to the President and Congress a report on the activi-
ties of the Commission, including the recommendations re-
quired under section 3(b)(2).
(e) TERMINATION.—The Commission shall terminate
on the one hundred and eightieth day following the date
of transmittal of the report under subsection (d). All
records and papers of the Commission shall thereupon be
delivered by the Administrator of General Services for
deposit in the National Archives.
Æ