Motor & Equipment Manufacturers Association (MEMA) officials on Wednesday said the organization has joined a delegation of Michigan lawmakers in supporting efforts to protect motor vehicle parts suppliers amid the COVID-19 pandemic.
Officials said action by MEMA and its division, the Original Equipment Suppliers Association (OESA), stems from the stance outlined by Michigan’s Senate and House of Representatives members who recently forwarded correspondence to Treasury Secretary Steven Mnuchin.
“Motor vehicle parts manufacturers are the linchpin of U.S. vehicle manufacturing,” said the letter that was led by U.S. Sens. Debbie Stabenow (D-MI) and Gary Peters (D-MI) and also signed by a dozen members of Michigan’s congressional delegation. “No sector has more complex supply chains or provides more direct manufacturing jobs than motor vehicle parts manufacturing. This industry employs over 871,000 people across the United States with over 125,000 jobs in Michigan alone. We write to you today to open a dialogue on providing critical financial assistance to this industry during this time of national crisis. We believe that this can be accomplished under existing CARES Act authority.”
MEMA President and CEO Bill Long said MEMA and OESA have been working with the Michigan delegation to convey concerns about supply base liquidity needs.
“The time to act is now, before it is too late,” he said. “Our members report that many suppliers are close to insolvency. We appreciate the bipartisan work of the delegation and encourage Secretary Mnuchin to engage with these members immediately.”
OESA President and CEO Julie Fream said motor vehicle parts suppliers play an essential role in the global economy.
“It is critical for the U.S. to stabilize the complex and vital motor vehicle supply chain to enable vehicle manufacturers to resume production as safely and efficiently as possible,” she said.