The automotive industry is building a case for federal assistance in a $2 trillion economic stimulus package as Senate Republicans and Democrats continue to negotiate the deal after efforts to pass legislation stumbled Sunday.
In an email to Congress obtained by Automotive News, the Alliance for Automotive Innovation reiterated the industry’s role in the economy.
“In the United States, 14 automakers operate 44 assembly plants across 14 states. The U.S. auto industry accounts for about 10 million jobs, and auto manufacturing, sales, and service account for almost $2 trillion in economic output,” the alliance, which represents suppliers, automakers and tech companies, wrote in the email.
Challenges related to the coronavirus outbreak are directly impacting automakers and all aspects of the auto sector, according to the email, with auto industry analysts expecting sales to be down by as much as 40 percent this month compared with 2019.
The email also includes a list of North American assembly facilities that have suspended production temporarily as a result of the coronavirus.
The National Automobile Dealers Association also called urged Congress for “for bold bipartisan action” to help small businesses including the nation’s franchised dealerships.
NADA, in a letter sent Saturday to Senate Majority Leader Mitch McConnell, R-Ky., and Senate Minority Leader Chuck Schumer, D-N.Y., said it strongly supports the economic stimulus package — called the Coronavirus Aid, Relief and Economic Security Act, or CARES Act.
“Over the last week, automobile and truck sales, which represent 19 percent of our nation’s retail economy, have virtually stopped,” NADA Chairman Rhett Ricart said in the letter. “This situation has created a massive liquidity problem and stressed auto and truck dealerships. Payroll is the highest dealership expense, but employees are the dealership’s most valuable asset.”
Ann Wilson, senior vice president of government affairs for the Motor & Equipment Manufacturers Association, said that while the Senate package addresses the concerns of small and large businesses, she wants to make sure medium-sized suppliers and manufacturers — those with more than 1,500 employees who may not be eligible for small business loans — are not forgotten.
“We know it’s important for … medium-sized suppliers to continue to be viable, to be able to continue to have their workforce available and to continue to be able to provide parts throughout the supply chain,” she told Automotive News. “Our focus is preserving those manufacturers, offering them opportunities for loan programs that really focus on continuing to keep their doors open and continuing to be able to, in the future, be able to produce components and parts for the industry.”
