Automotive, Heavy Duty Suppliers Seek Economic Relief from U.S.

Nov. 11, 2008
Suppliers to the automotive industry have cut 130,000 jobs since last year

In a letter sent to House and Senate leadership on Nov. 10, the Motor & Equipment Manufacturers Association (MEMA) reiterated a message sent to President Bush last week: motor vehicle parts suppliers need continued support of supplier participation in the Advanced Technology Vehicle Manufacturing Incentive loan program and establishment of a loan guarantee program through the Troubled Asset Relief Program (TARP) or other mechanism specifically for the supplier industry.

The letter stated that in 2007, suppliers to the automotive industry directly employed 722,600 U.S. workers. As of June 2008, that domestic industry employment fell to 590,000 workers. "That is a loss of more than 130,000 good paying American jobs in less than two years and does not take into account reduction in employment in the aftermarket and heavy duty sectors," the letter continued. "Addressing the concerns of the domestic automobile manufacturers alone will not stem the tide of these job losses."

"The automotive industry and the supplier industry are both facing unprecedented economic hardship and hundreds of thousands of domestic jobs depend on our ability to find thoughtful solutions to meet these challenges," said Bob McKenna, MEMA's president and CEO.

According to recent studies, motor vehicle suppliers are the nations largest manufacturing sector and provide 70% of the content of U.S.-built cars and trucks. Suppliers manufacture the parts and technology used in the 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 three, Automotive Aftermarket Suppliers Association (AASA), Heavy Duty Manufacturers Association (HDMA) and Original Equipment Suppliers Association (OESA). For more information on the motor vehicle parts supplier industry, please visit or

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