Auto suppliers seek help from lawmakers
WASHINGTON (AP) — Auto suppliers said Friday they are in crisis and may be forced out of business by temporary factory shutdowns at General Motors Corp. and Chrysler LLC.
That would leave U.S. automakers without their supply base when the economy improves, the suppliers warned.
In a letter to Congress members, the Motor & Equipment Manufacturers Association said many suppliers will have no choice but to permanently close during auto factory shutdowns planned for this summer.
“Without immediate action, communities throughout this country will needlessly lose essential manufacturing jobs and the U.S. auto industry will not have a sufficient supply base to manufacture vehicles in this country,” said Bob McKenna, the group’s president and CEO.
Chrysler, which filed for bankruptcy protection last week, plans to idle all of its plants in the U.S. until its sale to Italian automaker Fiat Group SpA is complete, while General Motors has announced plant closings and extended shutdowns this summer.
McKenna’s group urged Congress and the Obama administration to provide direct financial assistance to parts suppliers and promote incentive programs for new car buyers.
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