Suppliers Express Dismay as Senate Fails to Act on Auto Loan


PHOTO

WASHINGTON, December 12, 2008: The Motor & Equipment Manufacturers Association (MEMA) expressed its dismay and disappointment as the Senate did not secure the votes necessary to pass financial assistance to the automotive industry. MEMA had urged the Senate to support the legislation in hopes of preventing a major vehicle manufacturer bankruptcy and the feared chain reaction throughout the supplier industry.

"Valuable domestic manufacturing jobs throughout the United States are at immediate risk and it is too easy now to envision the further damage that our economy will suffer," said Bob McKenna, MEMA's president and CEO.

McKenna repeated what was stated in a letter sent Thursday to all Senators: the supply base is the common denominator among all vehicle manufacturers and that domestic car manufacturers share 58-65 percent of their suppliers with Asian manufacturers and 37-46 percent with European manufacturers in North America. "There is simply no way that a vehicle manufacturer bankruptcy will not cause further bankruptcies and extraordinary hardship within the supplier industry."

McKenna acknowledged the difficult issues facing Senate negotiators and urged the Administration to now allow funds from the TARP to be used as a bridge loan to the auto companies. "This industry is too important to the economic health and well being of the nation to be left to fail," McKenna said. "The fate of domestic manufacturing and hundreds of thousands of jobs are hanging in the balance waiting for action."

According to recent studies, motor vehicle suppliers are the nation's largest manufacturing sector and the largest employer in seven states. Suppliers provide 70 percent of the content of U.S.-built cars and trucks. Suppliers manufacture the parts and technology used in the production of more than 11 million 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.

Home | Buyers Guides By Make | New Car Buyers Guide | Used Car Super Search | Total New Car Costs | New Car and Truck Reviews
Automotive News | TACH-TV | Media Library | Discount Auto Parts

Copyright © 1996-2014 The Auto Channel. Contact Information, Credits, and Terms of Use. These following titles and media identification are Trademarks owned by The Auto Channel, LLC and have been in continuous use since 1987 : The Auto Channel, Auto Channel and TACH all have been in continuous use world wide since 1987, in Print, TV, Radio, Home Video, Newsletters, On-line, and other interactive media; all rights are reserved and infringement will be acted upon with force.

Privacy Statement | Size Does Matter | Media Kit | Affiliates

Send your questions, comments, and suggestions to Editor-in-Chief@theautochannel.com.

Submit Company releases or Product News stories to submit@theautochannel.com.
Place copy in body of email, NO attachments please.

To report errors and other problems with this page, please use this form.

Link to this page: http://www.theautochannel.com/

*