MEMA, the Vehicle Suppliers Association, recently sent a letter to the Biden administration, emphasizing the interdependence of automakers and vehicle suppliers.
“MEMA has been activating and engaging with relevant officials, opening lines of communications on behalf of suppliers, including those at the White House,” Bill Long, MEMA president and CEO, said. “In every discussion, we shared clear facts and insights into the fragility of the vehicle supplier community and the need for fast and easily accessible programs to assist suppliers in navigating the financial hardships caused by the strike. We continue to work closely with the administration to develop a clear path forward.”
A single component’s unavailability can halt an entire production line. As a consequence, MEMA has urged the administration to introduce a scalable program that would maintain the work force and operational capacity. The program primarily would be aimed at suppliers with annual revenue of less than $200 million.
It also urges the administration to establish an immediate training program enabling suppliers to retain their work force and equip them with new skills, and to reassess the Domestic Manufacturing Conversion Grant Program Under the Inflation Reduction Act.
MEMA also highlighted the impact of the recent UAW-Detroit 3 contract negotiations’ work stoppages on the supplier community.