Find a Car
Go!

Suppliers Weigh In on Gov't Bailout: Help! (Please!)


creative commons - flickr.com: http://www.flickr.com/photos/cwalker71/2679885611/

creative commons - flickr.com: http://www.flickr.com/photos/cwalker71/2679885611/

Enlarge Photo
Underscoring the ripple effects that plant shutdowns, lagging vehicle sales, and threats of Chapter 11/Chapter 7 have on suppliers to automotive manufacturers, today 98 automotive supplier CEOs sent letters to every members of the U.S. Senate and House listing the dire need for access to capital to protect jobs. Predictably, the letters asked Congress to provide immediate financial assistance to the auto industry.

The letters went beyond just asking for assistance, however, stating opposition to the move to cap the loans at a certain amount in the current Department of Energy loan scenario. Said Bob McKenna, president and CEO of Motor & Equipment Manufacturers Association, "the vehicle manufacturers and the supplier industry are interwoven." McKenna also contested the portrayal of economic assistance as a bailout, claiming the assistance will "help provide a framework and structure for protecting these valuable domestic manufacturing jobs."

Recent studies identify auto industry suppliers as the largest manufacturing sector in the U.S., providing 70 percent of the content of U.S.-built vehicles. These suppliers construct parts and technology used to produce in excess of 11 million new vehicles every year as well as aftermarket parts for repair and maintenance of more than 247 million vehicles currently on the road.--Colin Mathews
---

Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius.
 
Follow Us

Commenting is closed for this article
Try My Showroom
Save cars, write notes, and comparison shop with hi-res photos.
Add your first car
Take Us With You!
   

 
© 2015 The Car Connection. All Rights Reserved. The Car Connection is published by High Gear Media. Stock photography by izmo, Inc. Read Our Cookie Policy.