Automotive Suppliers to Take Their Case to Washington, D.C.; MEMA Fly-in Scheduled for October 1

RESEARCH TRIANGLE PARK, N.C., Sept. 5 -- Automotive supplier executives will travel to the nation's capital on Tuesday, Oct. 1, to communicate the hardships they are experiencing due to the Bush administration's steel safeguard program (Section 201). The fly-in is being hosted by the Motor & Equipment Manufacturers Association (MEMA), a trade association representing automotive products manufacturers.

"The event will provide our members with an opportunity to meet one on one with members of Congress and administration officials to discuss the devastating problems caused by the steel safeguard program and the resulting tariffs," said Ana Lopes, director of government relations for MEMA. Lopes added that MEMA has received commitments from numerous supplier executives, including CEOs, vice presidents of purchasing, CFOs and government affairs directors.

Since the steel program was instituted in March 2002, automotive suppliers have experienced price increases of up to 50 percent, which cannot be passed on to their customers. Automotive parts and components manufacturers have also faced a growing shortage of steel, leaving companies unable to fulfill their delivery commitments.

"Our members are facing possible layoffs and plant shutdowns, or perhaps the scenario of moving production overseas," Lopes said. "At stake are 2.2 million jobs in the United States and these are jobs we don't want to lose. Recent tariff exclusions from the administration have failed to provide significant relief to our members, causing the situation to move toward a critical stage."

According to Lopes, the fly-in will match executives with their local legislators and key members of the Bush administration. "There is no substitute for people visiting directly their legislators," she said.

In the short term, Lopes hopes the fly-in will convince President Bush to examine the enormous effects the tariff program has had on steel consumers and to use his discretion to appropriately adjust or eliminate the program.

Affected companies seeking to participate in the fly-in should contact Ana Lopes at alopes@mema.org or 202-393-6362.