Gibson Guitar CEO: Raid by feds to cost company $2 to $3 million

It sounds like a case of government overreach: federal agents raiding guitar factories in Memphis and Nashville, Tenn. and confiscating wood imported from India. But why the raids occurred are still open questions, according to Gibson Guitar CEO Henry Juszkiewicz.

Juszkiewicz discussed the raid on Hugh Hewitt’s radio show Monday night. He said he was unaware of what the federal government wanted, but said their operations would be costly for his company.

“Well, total — you know, this second raid and all-inclusive — my personal guess is somewhere in the neighborhood of $2 million to $3 million,” Juszkiewicz said.

Reportedly the imported wood was confiscated because it was exported while in violation of Indian labor law. But at a time when job creation is key to President Barack Obama’s future political success, questions are arising about the use of U.S. government resources to enforce its interpretation of foreign law in a way that hurts a thriving business.

Juszkiewicz explained that Gibson had been hiring, despite the economic downturn.

“We employ approaching 2,000 people here in the United States, and we have hired just in the last two years something like 580 new employees in the United States,” he said.

In 2009 Gibson Guitar faced a similar raid for wood that violated Madagascan law, over environmental concerns. But this time Juszkiewicz said they were being singled out while other companies and industry that use the same product weren’t.

“We don’t what is motivating it,” Juszkiewicz replied. “It is one, clear to me that there is some terrific motivation because we are not the only company that uses this type of wood. Virtually every other guitar company uses this wood and this wood is used prominently by furniture and architectural industries, and to my knowledge none of them have been shut down or treated in this fashion.”

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  • Bobbyboynyc

    Probably, Gibson advocated the Constitution or supported honest government, Tea Party, Ron Paul, something like that. Government only attacks politically incorrect businesses. Certainly the liberals and socialists have nothing to fear. They never start businesses of employ American laborers.

  • Walt of Florida

    This has to be the joke of the year.  Obama is supposed to be creating jobs.  Well, you don’t create jobs by shutting companies down.  They talk about violating Indian labor laws, but this country can’t even enforce the illegal immigration law.  So they pick on the private sector as usual.  Let Obama keep screwing up, and come next election day, screw him right out of office.  He’s not competent enough for the job.  The president’s position holds more responsibility than playing golf and vacationing in foreign countries.  The American people are sick and tired of hearing the same old speeches about creating jobs.  AND, this isn’t just about union jobs.  There are millions of Americans out of work that don’t belong to a union, and they’re just as important as the union member.  So, ladies and gentleman, let ,Obama, get shovel ready and let him dig his own grave.  Let him dig himself right out of office!

  • Horacehenley

    I think that this is one of the exact reason that the Tea Party is in existence today and why Ron Paul  probably will be our next President.   This is an  over extenstion of government  manipulation and I don’t know why, but it appears that President Obama is bound and determined to destroy every successful manufacturer in this country. 
    Signed:  Horace Henley

  • Eugene

    This is just another ploy by this administration to tear our country down!

  • Anonymous

    Gibson has been using the same wood for over 17 years .The fact they are in a right to work state and  non-union may be a reason for this raid. This company also supports Republicans. Every other company uses the same wood . Add it up and the only logical conclusion says this was pure politics. It should send a chill down every spine . It is disturbing , it is like the GISTAPO  in AMERICA ! People better wake up , Obama is a danger to our future. He will stop at nothing to bring down jobs and push us into his SOCIALIST WORLD !