MACKINAC ISLAND – Help from both the state and federal government is needed to make the auto industry more productive, Tom LaSorda, CEO of the Chrysler Group of DaimlerChrysler said Thursday, but he also acknowledged that large job growth from the industry is not likely.

Few new assembly plants will be built by any manufacturers, LaSorda told reporters, and cars have fewer parts overall meaning fewer overall workers will be needed.

But there will still be a need for component plants and if the industry builds “an excellent product” the possibility of job growth in those plants is good, he told reporters.

LaSorda acknowledged that the industry coming out of its slump will require the industry itself to design and build a product that consumers want.

But to an audience of several hundred attendees and reporters, LaSorda said there are still some actions federal and state officials can take that will help auto companies control their costs and provide a level playing field against foreign competitors.

The state could help in controlling health care costs, and should since the federal government is gridlocked over taking any action to provide overall national health care coverage.

One thing the state could do is require common information technology infrastructure among health care providers that could reduce administrative costs on the corporate side, LaSorda said.

He also said his company’s health care experts are studying the Massachusetts law requiring health care coverage for all individuals, and they are studying Gov. Jennifer Granholm’s proposal to provide universal coverage for more than 1 million Michigan residents. Moving in that direction is “a big step forward,” he said.

Michigan should also take more steps to make ethanol available, LaSorda said. There are some five million American made vehicles, including 1.25 million from Chrysler, either on the road or coming out that can use E85 ethanol, but there are only a few stations in Michigan that provide the fuel.

LaSorda announced to the crowd that Chrysler will build a new diesel Jeep Grand Cherokee in Detroit and he told reporters every one of the vehicles will leave the factory with biodiesel in the tank. But where those vehicles will get the fuel afterwards is a problem.

In Minnesota, some 8 percent of their gas stations have E85 available, LaSorda said and Michigan’s Legislature should find some way to both require and incentivize fuel outlets to have 25 percent of their pumps available to sell E85 ethanol.

LaSorda said he hoped oil companies would recognize the growth opportunities available by expanding the use ethanol to obviate the need for government mandates. But mandates are sometimes needed, he said.

And LaSorda called for the federal government to get serious about currency controls. While most of the discussion on the issue has focused on China, Mr. LaSorda focused his comments on the Japanese government’s efforts to keep the Yen cheap. Japanese currency manipulation gives those companies an estimated $3,000 a vehicle advantage on a $30,000 vehicle.

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