U.S. auto suppliers on Tuesday made a plea to President Joe Biden, calling for federal assistance to alleviate the impact on auto parts companies caused by the ongoing United Auto Workers strike against the Detroit Three automakers.
In a letter obtained by Reuters, MEMA, representing the Vehicle Suppliers Association, urged President Biden to take swift action to ensure the survival of this crucial industry sector. They emphasized that the automotive industry’s ability to return to full manufacturing capacity is in jeopardy without federal intervention.
The group specifically requested that the Biden administration offer low-interest loans and explore the possibility of loan forgiveness to aid struggling small suppliers. It’s worth noting that President Biden was scheduled to visit Detroit on Tuesday to demonstrate his support for the striking UAW workers.
As of now, the White House has refrained from immediate comment and has previously chosen not to disclose whether it is contemplating any programs aimed at bolstering the auto supplier sector.
The ongoing strikes have already led to production reductions and the furloughing of some workers at certain auto suppliers. The letter underscored the “immediate concern” for smaller suppliers whose revenue falls below the USD 200 million mark. MEMA urged the Biden administration to establish a program through the Small Business Administration or other relevant agencies to sustain the workforce and operational capabilities of these smaller enterprises.
