WASHINGTON (June 9, 2009)—Executives of the Motor & Equipment Manufacturers Association are preparing to meet tomorrow with officials of the Obama administration to ask for an additional $8 billion to $10 billion in aid money to help auto parts suppliers survive in the wake of the bankruptcies of Chrysler L.L.C. and General Motors Corp.
The $5 billion Auto Supplier Assistance Program unveiled in March by the Treasury Department had only limited usefulness for auto parts makers, MEMA said. It only benefited Tier 1 suppliers for GM and Chrysler, and further restrictions limited its reach, according to the association.
“Since it was not fully operational for when Chrysler filed for Chapter 11, many suppliers were left significantly exposed,” MEMA said. “Smaller suppliers in financial distress are completely dependent upon their first-tier customers to provide financial assistance down through the supply chain.”
MEMA is urging its members to write to the Senate and the House of Representatives to request both direct financial assistance to auto suppliers and a short-term incentive program for consumers to buy new cars. A new “Cash for Clunkers” bill, which would give motorists vouchers of $3,500 to $4,500 to trade in gas-guzzling cars and trucks for more fuel-efficient vehicles, could reach a House vote as early as today.