19th
March 2009 - MEMA Praises U.S.
Administration for Acting to Assist Industry
The Motor & Equipment Manufacturers
Association praises the Obama Administration for taking quick action to
assist motor vehicle parts suppliers, the nation's largest manufacturing
sector. Reacting to the U.S. Department of the Treasury announcement of
the creation of the Auto Supplier Support Program which will provide up
to $5 billion in financing, MEMA President Bob
McKenna stated, "This is a tremendous step toward stabilizing
the supply base, which will benefit the domestic automotive
manufacturing industry."
According to materials provided by the
Treasury Department, the program will:
| ▫ |
Provide
eligible and participating suppliers with access to
government-backed protection that money owed to them for the
products they ship will be paid; |
| ▫ |
Allow
participating suppliers to be able to sell their receivables
into the program at a modest discount, providing funding to
operate their businesses and help unlock credit more broadly
in the supplier industry. |
Neil De Koker, President
of the Original Equipment Suppliers Association, also praised the
Administration's actions. "This program comes at a very critical time
and will help suppliers as they struggle to continue operations," De
Koker stated. "We are very optimistic that this will provide many
companies with the relief they need."
Both McKenna and De Koker emphasized the
need for continued dialogue with the Treasury Department to ensure
smooth implementation of the program and allow for any necessary
follow-up. For more details on the Treasury Department's Auto Supplier
Support Program, please
click here.
About MEMA and OESA
MEMA represents motor vehicle parts
suppliers, the nation's largest manufacturing sector and the largest
manufacturing employer in seven states. These jobs contribute to 4.5
million private sector jobs across the country. Suppliers manufacture
the parts and technology used in domestic production of more than 11
million new cars and trucks produced each year, and the aftermarket
products necessary to repair and maintain more than 247 million vehicles
on the road today.
MEMA supports its members through its
three affiliate associations, Automotive Aftermarket Suppliers
Association (AASA), Heavy Duty Manufacturers Association (HDMA), and
Original Equipment Suppliers Association (OESA). OESA represents more
than 400 member companies having global automotive sales exceeding
$300 billion and 65 percent of North American automotive
supplier sales. For more information on the motor vehicle parts supplier
industry, please visit
www.mema.org or
www.oesa.org.
Source: MEMA Press Release