(Bloomberg) -- The auto industry is escalating its push for U.S. assistance to help weather the impact of a global pandemic that has halted or will soon stop production at 42 out of 44 plants that assemble vehicles in the country.
The closures will affect about 164,000 workers and mark a dramatic expansion from the 15 plants that were idled as of March 20, the Alliance for Automotive Innovation wrote in an email to U.S. lawmakers on Monday reviewed by Bloomberg News.
The tallies were sent along with a letter to Democratic and Republican congressional leaders that urged them to create a pool of loans and loan guarantees to help large, medium and small companies as part of economic stimulus plans being negotiated in Washington. The letter was co-signed by the chief executives of trade associations representing auto-parts manufacturers and car dealers, in addition to the Alliance.
“The challenges related to Covid-19 are directly impacting not just automakers but all aspects of the auto sector – which includes suppliers, dealers, and other key small business partners across the country,” the groups wrote. They said analysts are estimating that auto sales may plunge as much as 40% in March from a year ago.
| Read more |
|---|
The letter marks a ratcheting up of the industry's initial request for virus-related aid last week. The Alliance and the Motor and Equipment Manufacturers Association, which represents the parts makers, called for top lawmakers to delay the June 1 implementation of supply-chain rules contained in the United States-Mexico-Canada Agreement on trade. They also asked for several tax-relief measures, including a deduction or credit for companies providing paid sick leave and a temporary employer payroll-tax holiday.
The auto and parts manufacturers have yet to go so far as airlines and other industries that have asked for grants to help sustain employment through the crisis.
©2020 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
