Manufacturing’s impressive gains in energy efficiency often come via new processes and products that do not necessarily attract major headlines (or Presidential visits), but still represent progress the U.S. economy must make toward energy savings and global competitiveness.

Take, for example, this advance as reported by The Environmental Leader, “GM Rolling out GE Efficiency Program at 20 Plants“:

A GE energy efficiency program with a less than six-month payback is being implemented at 20 General Motors plants, the two companies have announced.

GM has adapted GE’s Proficy Cimplicity software to tie the use of lights to the schedule of conveyers. The manufacturer then discovered other aspects of consumption that could also be tied to conveyer operations, including air supply houses, compressed air generators, water and paint shop ovens.

“Everything in a vehicle assembly plant is tied to the conveyor,” said Mike Durak, General Motors, Global Information Technology Manager. “A hidden benefit was that once we scheduled the conveyor we had a good view into what the plant was doing, so we were able to schedule the on and off of big energy consumers in the plant.”

Less than a six-month payback! And GM adapted the technology because it was a good business decision, one that saves it money.

And let’s extend a thanks to the programmers, too. Energy efficiency sometimes requires new equipment, sometimes new software. Impressive in either case.

Sen. Chris Coons (D-DE) gave his maiden floor speech in the Senate Thursday, and he made manufacturing in Delaware and the United States his theme. Thank you, Senator.

There is much to recommend in his speech — we appreciate the citation of the NAM’s work — and we pick out the section that used a real-world example to make the larger points about U.S. manufacturing policy.

Many Americans may not realize it today, but ours still remains the No. 1 manufacturing economy in the world. We still produce one-fifth of all manufactured goods worldwide, and this sustains more than 18 million private sector jobs. Advanced manufacturing businesses know that to achieve the quality and productivity they need, they must find a top-notch workforce, modern infrastructure, and a fair and predictable system of regulation.

I learned this myself firsthand when I was working in the private sector at a company known as W.L. Gore & Associates. It is better known perhaps for discovering and marketing GORE-TEX fabrics, but it is a materials-based company that manufactures hundreds of products, from medical devices to wire and cable. At one point, I was part of a site location team that had to decide where to build a new state-of-the-art manufacturing plant, costing more than $100 million. It could have been anywhere in the world, but we wanted to locate it right here in America. As we considered many cities and States bidding for the plant, we ultimately made a decision.

What made the difference? What were we looking for? First, a reliable and skilled workforce. Second, State, county, and city governments that were responsive and had already made investments in local infrastructure. While we also considered tax credits and training grants, an educated workforce, responsive local government, and high-quality infrastructure were the main factors that attracted our business.

The full text of his remarks is here. The entire speech is to be recommended. Thank you, again, Senator.

News Journal, “Delaware Sen. Chris Coons’ first Senate speech focuses on manufacturing.”

Prior to President Obama’s announcement of his new economic team members on Friday, Jan. 7, several media outlets reported the anticipated appointment of Ron Bloom to a new, elevated White House position on manufacturing, with the inevitable shorthand of “manufacturing czar” being mentioned. Since then, the speculation has subsided.

Which is all for the good. Sometimes, personnel ISN’T policy, policy is policy.

In his current capacity as Senior Advisor to the Secretary for Auto Issues and Auto Task Force senior member — “czar” would be a shorter title, wouldn’t it? — Bloom spent part of last week at the Detroit Auto Show. He submitted a post at the Treasury Department’s blog, “Reflections from the Detroit Auto Show.”

Looking at the innovations premiered at this year’s show only confirmed my belief that in the next dozen years, the automobile industry will see more change than it has in the last 50 and that that change will encompass almost every aspect of what we think of today as the car business.

We don’t immediately find the full text of Bloom’s remarks. Here’s coverage:

• Detroit Free Press, “U.S. Treasury advisor: Detroit Three recovery can happen to all U.S. manufacturing“
• Detroit News, “Bloom reflects on $85 billion bailout“
• Detroit News, “Auto czar buys a Dodge, says Steve Rattner no Clooney“
• Associated Press, “Obama official encouraged by auto recovery“

President Obama was in Elkhart County, Ind., and Vice President Joe Biden traveled to NextEnergy, a nonprofit, in Detroit on Wednesday to promote battery development as an important piece of developing the less-polluting vehicles. From The Detroit News, “Big 3, Michigan win big in battery grants”:

Detroit — Michigan and Detroit’s Big Three automakers will receive more than $1.3 billion of $2.4 billion in federal battery and electric vehicle grants, the White House said today.

“The battle for America’s future will be fought and won in places like Elkhart and Detroit,” President Barack Obama said today at a speech in Indiana, outlining the awards that do not need to be repaid.

Five teams in Michigan will receive $966 million of the $1.5 billion in battery manufacturing grants as part of an effort to speed the introduction of mass market plug-in electric hybrid vehicles.

Funding for the 48 grants for advanced battery and electric drive projects comes from the stimulus bill, the American Recovery and Reinvestment Act. The projects were selected through a competive Department of Energy process, and recipients will put up a 50 percent cost share.  The White House news release provides more details of what the grants will cover:

•  $1.5 billion in grants to U.S. based manufacturers to produce batteries and their components and to expand battery recycling capacity;
•  $500 million in grants to U.S. based manufacturers to produce electric drive components for vehicles, including electric motors, power electronics, and other drive train components; and
•  $400 million in grants to purchase thousands of plug-in hybrid and all-electric vehicles for test demonstrations in several dozen locations; to deploy them and evaluate their performance; to install electric charging infrastructure; and to provide education and workforce training to support the transition to advanced electric transportation systems.

President Obama’s speech.

Secretary of Energy Steven Chu traveled to a Mecklenberg County, N.C., factory to announce a $49 million grant for Celgard, which makes porous membranes for rechargeable lithium-ion batteries. Chu’s speech.

More news coverage…

• Milwaukee Journal-Sentinel, “Johnson Controls wins big hybrid battery grant.”
• Bloomberg, “GM, Chrysler, Ford Share in U.S. Grants for Batteries.
• NPR, “Obama Returns to Indiana, Says Stimulus is Working“
• Detroit Free Press, “$1.36 billion to create technology epicenter in Michigan“

The influx of federal money is definitely a big story in Michigan and the Detroit Area. More from the Free Press:

Yesterday’s forum at The New America Foundation, “Manufacturing a Better Future for America,” featured a discussion of federal support — the term “bailout” was used — for GM and Chrysler.

The context: Speakers advocated a national industrial policy and more restrictive trade policies to invigorate the U.S. manufacturing sector. We think of the panel as representing the organized labor wing of the Democratic Party.

Asking a question, Bill Frymoyer, director of government relations at the Stewart and Stewart and a former Gephardt aide, hailed what he described as the apparently successful rescue of the domestic auto industry. He elicited this response from Leo Hindery, Managing Partner of Intermedia Partners, chairman of the foundation’s Smart Globalization Initiative, and an influential Democratic activist. Hindery:

The reason the auto recovery worked so well is Ron Bloom largely steered it. And Ron Bloom, for those of you who don’t know, came out of the Steelworkers. He spoke more cogently and capably about the need for a manufacturing policy before a lot of us…and I think he brought a sense of manufacturing policy to that initiative, not strategy but policy.

And this is an issue that Scott [Paul] and I have gone back and forth on: Are what we talking about here, is it a strategy or is it a policy? And we think, Scott and I and Ron, I think, would say, it’s a policy. And when you have a policy, then you save CIT if it needs saving, because it does certain things, you approach GM and Chrysler as he tried to drive the administration, because it would fit under his sense of policy. Strategy is transient. Policy’s the same.

Also commenting was Scott Paul, executive director of the Alliance for American Manufacturing: (continue reading…)

News-talk radio, WJR, is covering the National Summit as well. NAM President John Engler is scheduled to be on the Paul W. Smith tomorrow at 7:20 a.m. For now…

• Paul W. Smith talks with Alan Mulally, President & CEO of Ford Motor Company.
• Frank Beckmann talks with Senator Debbie Stabenow.
• (June 15) Frank talks with Beth Chappell, President and CEO of the Detroit Economic Club, about the National Summit.
• (June 15) Frank talks with Senator Carl Levin about the National Summit.

And CNBC is heavily involved with the National Summit, broadcasting live throughout the day. Videos…

• Rebuilding the U.S. Economy — America’s leaders are gathering in Detroit to address the future of the economy, with CNBC’s Rebecca Jarvis; Deborah Wince-Smith, Council on Competitiveness…
• Reformulating Detroit — Tom Stephens, vice chairman of General Motors, tells CNBC what’s on the horizon for U.S. automakers.
• CEOs Meet in Detroit — Many of the nation’s top CEOs are at the National Summit in Detroit to offer their solutions to the economic crisis. Beth Chappell, president of the Detroit Economic Club…

We expect to see NAM President John Engler on CNBC tomorrow, as well, but scheduling is fluid at these sorts of events.

In looking for informative and comprehensive news coverage of the Detroit automakers, we turn to the Detroit newspapers, still plural, thankfully.

The Detroit News’ website is http://www.detroitnews.com

The lead headline on its webpage is: “GM to enter bankruptcy,” albeit in a much bigger font. Here’s how the morning will shake out, the News reports.

Early morning: GM files paperwork with U.S. Bankruptcy Court in New York
10 a.m.: GM Chief Financial Officer Ray Young briefs reporters in New York
11:55 a.m.: President Obama makes a statement about GM in Washington
12:15 p.m.: GM Chief Executive Fritz Henderson holds a press conference in New York

The Detroit Free Press’s website is http://www.freep.com

The Free Press’s lead headline on its website: GM files for bankruptcy protection

For the hard-hit Detroit metropolitan area, there is still some good news today:

AP sources: GM to stay in RenCen That’s the Renaissance Center, downtown.

Free Press, “Penguins still no match for Red Wings, who roll to 2-0 series lead”

Excerpts from the President’s remarks, via Reuters.

An e-mail to GM employees from Rick Wagoner, forced out as GM CEO:

On Friday I was in Washington for a meeting with Administration officials.  In the course of that meeting, they requested that I “step aside” as CEO of GM, and so I have.

Fritz Henderson is an excellent choice to be the next CEO of GM.  Having worked closely with Fritz for many years, I know that he is the ideal person to lead the company through the completion of our restructuring efforts.  His knowledge of the global industry and the company are exceptional, and he has the intellect, energy, and support among GM’ers worldwide to succeed.  I wish him well, and I stand ready to support him, and interim Non-Executive Chairman Kent Kresa, in every way possible.

I also want to extend my sincerest thanks to everyone who supported GM and me during my time as CEO.  I deeply appreciate the excellent counsel and commitment of the GM Board and the strong support of our many partners including our terrific dealers, suppliers, and community leaders. I am grateful as well to the union leaders with whom I have had the chance to work closely to implement numerous tough but necessary restructuring agreements.

Most important of all I want to express my deepest appreciation to the extraordinary team of GM employees around the world.  You have been a tremendous source of inspiration and pride to me, and I will be forever grateful for the courage and commitment you have shown as we have confronted the unprecedented challenges of the past few years.  GM is a great company with a storied history.  Ignore the doubters because I know it is also a company with a great future.

From The Detroit News:

Editorial: Rick Wagoner’s ousting had more to do with politics than his ability to revive GM

Well, at least now we know who’s running General Motors. The Obama White House, in an extraordinary expansion of the government’s reach, Sunday demanded and got the head of Rick Wagoner, the automaker’s embattled chief executive. In doing so, the president brushed aside GM’s board of directors, selected by shareholders and entrusted with the power to hire and fire executives, and assumed that role for himself.

While GM’s board had been often restless with the transformation of GM under Wagoner’s leadership, it maintained its confidence in his ability to get done a very tough job.

Shareholders can read the handwriting on the wall — this isn’t their company anymore.

That’s the risk you take when you go hat in hand to Washington. It ought to be a red flag for other companies and industries that might be thinking a federal bailout is the answer for surviving the recession.

From The Detroit Free Press:

U.S. can’t run auto companies

The risk was there from the start.

The federal money flowing to Detroit to help struggling automakers was always going to come with strings.

But there’s a fine line between holding General Motors Corp. and Chrysler LLC accountable for a pile of taxpayer cash and inappropriate government efforts to actually run the companies.

President Barack Obama’s Auto Task Force may have crossed that line over the weekend, when it asked for GM Chairman Rick Wagoner’s resignation and demanded that Chrysler link up with Fiat in 30 days, or give up on any more government aid.

It’s hard to see how either move is far shy of actually running the businesses. And if that’s the case, if the auto companies’ federal overseers have decided they’ll make managerial as well as financial decisions, this sets an awful precedent, both on general principle and in these particular instances.

You can read it here, at the site of the Senate Conservative Fund.

UPDATE (1:35 p.m.): White House Press Secretary Dana Perino and Deputy Chief of Staff Joel Kaplan just briefed the press on the latest developments. In extended entry…

(continue reading…)