The Detroit News, David Shepardson, 1/5/2008

Efforts to influence fuel economy standards largely drive record figure; GM leads industry with $14M.

he automotive industry spent a record $70.3 million lobbying Congress in 2007, a figure largely driven by efforts to influence changes in the fuel economy standards of the nation's cars and trucks, according to a new report by the Washington-based Center for Responsive Politics.

That amount was up 19.6 percent from the $58.8 million the industry spent in 2006, according to the report. The industry is expecting to spend the same or less in 2008 because it's an election year and their focus will be on proposed regulatory changes.

The nonpartisan Center for Responsive Politics said businesses, labor unions, governments and other interests spent a record $2.79 billion to lobby Washington in 2007, up 7.7 percent or $200 million in spending the year before.

"At a time when our economy is contracting, Washington's lobbying industry has been expanding," said Sheila Krumholz, executive director of the group. "Lobbying seems to be a recession-proof industry. In some respects, interests seek even more from our government when the economy slows."

General Motors Corp. led the industry in spending in 2007, chalking up $14.3 million. Ford Motor Co. spent $7.2 million. Toyota Motor Corp. followed with $5.9 million.

GM's lobbying expenses fell below other entities and trade groups like the AARP and the Pharmaceutical Research and Manufacturers Association of America. GM was the fifth largest corporate spender behind General Electric Co., ExxonMobil, AT&T and Amgen, according to the report.

"Our lobbying activity is proportional to the potential competitive and economic impact that proposed legislation could have on our business," said GM spokesman Greg Martin.

Last year, Detroit's automakers battled several contentious issues, including proposals to dramatically boost fuel economy requirements. In December, Congress approved a bill that increases fuel efficiency standards 40 percent to 35 mpg by 2020.

This year, GM has spent $4.1 million on lobbying, the second most of any U.S. corporation behind General Electric, which spent $4.2 million. Separately, GM's political donations this year include $25,000 to California Gov. Arnold Schwarzenegger's political action committee, Join Arnold, according to records filed with the California Secretary of State. GM has embraced reforms advocated by Schwarzenegger's PAC, including in health care and redistricting.

GM and other automakers have been at odds with California because the state has sued the Environmental Protection Agency to seek stricter emissions standards than those that exist under the Clean Air Act.

This year marks the first that companies are required to report their lobbying expenses every three months, instead of six.

Among the other automakers:

• Ford Motor Co. has spent $1.92 million in the first three months of 2008. Ford spokesman Mike Moran said the company doesn't expect to significantly boost spending in 2008.

• Of the $5.9 million Toyota spent in 2007, $3.6 million came in the second half of the year. Its total was up from $5.7 million in 2006, according to records filed with the U.S. Senate. Toyota has spent $1.2 million in the first three months of this year.

• Honda Motor Co. spent $1.83 million in 2007, and $462,000 in the first three months of 2008, a figure nearly on pace with last year.

• Nissan North America spent $4 million in 2007, up from $2.6 million in 2006. Nissan spent 1.1 million in the first three months of this year. The company hasn't filed its report for the first three months of 2008 yet.

• Privately owned Chrysler LLC spent $1.4 million in the first three months of the year after spending $4 million in the last six months of 2007. The privately owned company had not file a disclosure report with the Senate. The company spent $2.7 million in the last six months of 2007, most of which came after Daimler AG sold 80.1 percent of its stake in Chrysler.

The trade group representing the Detroit Big Three, Toyota and six other automakers, the Alliance of Automobile Manufacturers, spent $12.8 million in 2007, and $2.6 million in the first three months of this year.

Its counterpart, the Association of International Automobile Manufacturers, a group largely representing foreign-based automakers, including Toyota, Honda and Nissan, spent about $1 million in 2008 and $280,000 in the first three months of the year.