Industry Headlines

Motor Vehicle Parts Suppliers Urge Administration to Assist Industry

WASHINGTON, D.C.-In a letter sent on August 26, 2009, to President Barack Obama, the Motor & Equipment Manufacturers Association (MEMA) urged the administration to continue to explore ways to provide additional assistance to motor vehicle parts suppliers and communities with significant supplier employment.

“This assistance is vital not only to the ability to manufacture safe, more fuel-efficient vehicles, but also to the long term economic recovery of this nation,” says Bob McKenna, president and chief executive officer of MEMA. “Some of these steps can be taken without a substantial outlay of new revenue.”

As vehicle production recovers, there is insufficient capital available for the supplier industry to rehire workers, purchase raw materials and support a rapid ramp-up of third or fourth quarter vehicle products,” says McKenna. “We do not believe it is necessary or wise to test the limits of this capital-constrained industry and to risk unnecessary lost production, plant closures and additional job losses.”

MEMA also called on the administration to support and finance the manufacturing loan enhancement proposals of the Michigan Economic Development Corp. (MEDC) and the development of a national MEDC-type plan.

“We believe that any plan should be available to other states and communities and should have sufficient funding to provide the necessary public leverage for a wide range of manufacturing projects,” says McKenna.

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