Honeywell chief slams Obama protectionism

US president Barak Obama’s protectionist designs and the ‘Bangalore to Buffalo’ observations have come in for fresh criticism from corporate America.

Slamming the proposals for revamp of tax rules in a bid to force US corporations to become more inward looking, Dave Cote, chairman and chief executive of the $38 billion Honeywell International Inc, called the move worrisome and detrimental to overall growth of American and world GDP.

“Economics is not a zero sum game with my gain and your loss approach,” said the senior executive who is also a member of the India-US CEO Forum set up by George Bush in 2005. “A preponderance of American companies will say it is a bad move for the economy,” Cote said at the inauguration of a new $50 million research, development and engineering facility here.

“I do know that anything that creates any kind of protectionism and stops globalisation activities will be harmful to standards of living around the world,” Cote said.

Observing that 50% of Honeywell’s sales came from non-US markets, the Honeywell chairman said he was all for creating jobs where ever it was. “But you can’t love jobs but hate the people who create them,” he responded when asked how the US government and Congress would approach the new Obama proposals.

On Honeywell’s India plan, Cote said it would continue to invest and would double capacities at some of its units. In fact the current $600 million sales from the Indian operations were on track to hit the $1 billion target over three years.

A diversified manufacturer of aerospace, automation and control solutions, transportation systems and specialty materials, Honeywell has five manufacturing units in India and employs over 10,000 people in the country across seven cities. 

The Pune-based Honeywell Automation India (HAIL) is listed on the BSE and NSE and provides integrated automation and software solutions.

It employs 2700 engineers across eight offices in the country. This apart, Honeywell Turbo Technologies (HTT), also located at Pune, is set to double capacity of its turbocharger which improve fuel economy. Honeywell Technology Solutions (HTS), which provides technology, product and business solutions to other Honeywell units across the world, is located in Bangalore.

“India has played a major role in our growth and it will continue to play an important part for Honeywell.

We are very committed to the country and growth here,” he said adding that the new 600,000 square feet R&D facility, which was perhaps the biggest such centre for Honeywell in the world, was a sign of this. “Last year alone we hired 1500 engineers for our operations here,” he added.

Honeywell is looking for major defence and other civilian defence contracts from India.
It is already working with the public sector Hindustan Aeronautics Ltd (HAL), to produce aircraft engines, and is also one of the contenders for the retrofitting the engines of the Indian Air Force’s Jaguar fleet.