Quality Magazine

Motor & Equipment Manufacturers Association Urges Action from Congress

December 17, 2009

WASHINGTON, D.C. – In a letter to the Obama administration and congress, the Motor & Equipment Manufacturers Association (MEMA) outlined several immediate, necessary measures to help restore access to credit and promote technology development in order to ensure a strong domestic motor vehicle parts manufacturing industry.

In 2009, parts manufacturers have seen 50 reported bankruptcies and an estimated 200 liquidations in the industry. MEMA is calling upon congress and the administration to help assure sufficient capital for restructuring, consolidating and diversification; create technology funding programs that support long-term product and manufacturing technology innovation; and pass legislation to expand the lending capacity of the SBA 7(a) program to $5 million.

“Parts manufacturers are the nation’s largest manufacturing sector, and this industry continues to feel the severe, negative effects of bankruptcies and rapid consolidations,” says Bob McKenna, MEMA’s president and CEO. “This country needs a strong and stable supply base to promote the financial health of families and communities nationwide. The economic impact of this industry is felt not only by motor vehicle manufacturers but in the millions of other jobs that are dependent on motor vehicle parts manufacturers. The magnitude of the nation’s job loss cannot be rectified without addressing the needs of supplier industry.”

McKenna noted the need for more programs that focus on access to credit and the development of new technology. “With parts manufacturers responsible for two-thirds of the value of today’s vehicles and nearly 30% of total motor vehicle research and development investment, our industry is helping to lead the way to the next generation of safer, cleaner, more fuel efficient vehicles.”

“Without access to credit, loans, grants, and other programs that promote technology development, domestic parts manufacturing will be severely limited, and products to advance the goal of a new, national green economy will quickly be filled by competitors outside our borders.”

MEMA represents motor vehicle parts suppliers, the nation’s largest manufacturing sector, employing nearly 686,000 people across the country. Suppliers are also the largest manufacturing employer in eight states. These jobs contribute to 3.29 million private sector jobs across the country. Suppliers manufacture the parts and technology used in domestic production of new cars and trucks produced each year, and the aftermarket products necessary to repair and maintain more than 247 million vehicles on the road today. MEMA represents more than 650 member companies with global motor vehicle parts sales exceeding $600 billion and 65% of North American automotive supplier sales.