The Motor & Equipment Manufacturers Association (MEMA), in a letter to President Obama sent on Aug. 26, urged the administration to continue to explore a wide range of ways to provide additional assistance to motor vehicle parts suppliers and to 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,” said Bob McKenna, president and CEO of MEMA. “Some of these steps can be taken without a substantial outlay of new revenue.”
According to the New York Times, vehicle sales in the U.S. increase one percent during August compared with August 2008, and jumped 26% compared to July of this year, in part due to the cash for clunkers program.
“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,” McKenna noted. “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.”
The organization also called on the president 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.
