Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The restart of auto parts suppliers’ and original equipment manufacturers’ (OEMs’) plants would bring additional demand for steel and aluminum industries that have taken a heavy financial blow since their shutdowns in March due to the pandemic.

 

Bill Long, president and chief executive officer (CEO), MEMA and Julie Fream, president and CEO, OESA, sent a letter to Michigan’s Gov. Gretchen Whitmer on April 30 to request that she afford her authority so that automotive suppliers may recommence operations at a minimum of five days ahead of the resumption in OEM production. 

 

The CEOs said that re-opening the industry will follow stages and allow for execution of safety procedures for employees, while meeting industry requirements to increase production again. They stressed the importance of restarting five days prior to OEM production so that suppliers could provide parts and components to automotive manufacturers.

 

They ended the letter stating their willingness to demonstrate to the governor and the state of Michigan, that suppliers are ready to resume manufacturing safely and carefully, then requested the governor’s support and leadership in order to make this happen for the state.

 

Michigan, which is home to the three biggest carmakers, also has the highest concentration of auto parts and OEM supplier facilities in the US.

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