The Motor & Equipment Manufacturers Association (MEMA) estimates COVID-19 will cause a 19pc decrease in US automotive manufacturing and an 80pc decline in global car sales.
The association, in a letter addressed to House Speaker Nancy Pelosi and Senate leader Mitch McConnell, urged Congress to provide additional liquidity to large and small vehicle parts manufacturers to help them tide over the current economic crisis.
MEMA said thriving motor vehicle parts supply and manufacturing businesses are indicators of a robust economy, and that with financial aid they will survive the anticipated decline in auto sales.
In particular, the association asked Congress to consider giving vehicles parts manufacturers and suppliers a year-long reprieve from Sec 232 and 301 tariffs; to create a taskforce providing grants to those facing pandemic-induced bankruptcy so they can remain afloat; and a separate grants program called the Automotive Component Technology program to help shift key supply chain components, such as research and development, back to the US.