Ford Motor Co. (F) Chairman Bill Ford Jr. said the U.S. government needs to set a national industrial policy that pulls together academia, industry and the private sector in order to boost the country's competitiveness.

"The industrial base is eroding and prosperous nations don't let their industries erode," Ford said during the National Summit in Detroit Monday. "Government, industry and academia all have to be on the same page. Too many times they throw bombs at each other rather than working together."

More than 100 executives from around the country are meeting in Detroit over the next three days to discuss policies, technologies and manufacturing. Ford, along with Dow Chemical Co. (DOW) Chief Executive Andrew Liveris plan to use the discussion to lobby President Barack Obama's administration to forge a new energy and industrial policy that covers the entire country.

"We need a sane energy policy," Liveris said in a speech. "For too long that has been an oxymoron. "Everyone has to contribute. We also must invest in all types of alternative energy because we just don't know which ones will work."

Separately, Ford backed Obama's move to bail out Chrysler Group LLC and General Motors Corp. (GM) because it protected the supply base. Uncontrolled bankruptcies by GM and Chrysler could have shut the suppliers who provide parts to Ford. However, Ford once again defended his company's decision not to take federal aid.

"We can make quick decisions and long-term decisions without getting distracted," Ford said. "We can also remain focused on our customers."

Ford also said he believes the federal government will be involved in GM for "some time" although he didn't elaborate. The U.S. Treasury provided more than $20 billion in low-interest loans to GM to keep the company operating while it undergoes the bankruptcy process. GM filed for bankruptcy protection on June 1. Once it emerges, the federal government will own about 60% of GM. Chrysler filed for bankruptcy on April 30, underwent bankruptcy and merged its assets with Fiat SpA (FIATY). The government owns an 8% stake in Chrysler.

-By Jeff Bennett; jeff.bennett@dowjones.com; 248-204-5542