WASHINGTON (May 12, 2009)—Direct financial assistance and an incentive program to encourage new vehicle sales are vitally to keep the nation's auto parts suppliers in business, the Motor & Equipment Manufacturers Association said.
MEMA President and CEO Robert E. McKenna sent a letter to every member of Congress, urging their help.
Chrysler L.L.C.'s bankruptcy and General Motors Corp.'s scheduled plant shutdowns will leave auto parts makers in a precarious position, McKenna said.
“During these shutdowns, many suppliers will have no choice but to permanently close their facilities,” he said. “Once vehicle manufacturers resume production, suppliers will be expected to purchase materials and pay operating costs and employee wages without any ready cash or immediate payments.”
The Auto Supplier Assistance Program announced by the Treasury Department in March 2009 helps only Tier 1 suppliers to GM and Chrysler, and since the program hadn't been fully implemented when Chrysler filed for Chapter 11, its suppliers were left in a very bad position, McKenna said.
No members of Congress have yet responded to the letter, a MEMA spokeswoman said.