The motor vehicle parts industry last week urged Congress to invest in the industry, which needs greater access to capital and long-term programs to support technology and innovation.
In a presentation to the Senate Banking, Housing, and Urban Affairs Subcommittee on Economic Policy, Dave Andrea, vice president of industry analysis and economics for the Original Equipment Suppliers Association, spoke on behalf of OESA as well as other motor vehicle parts associations, including the Motor & Equipment Manufacturers Association and the Heavy Duty Manufacturers Association, one of MEMA's affiliates.
During his testimony, entitled "Restoring Credit to Manufacturers," Andrea asked Congress and the Obama administration to assure sufficient capital for restructuring, consolidating, and diversifying the industry. He also appealed to legislators to address the specific needs of small suppliers and create technology funding programs.
"Bankruptcies are happening, and will continue to happen," said Neil De Koker, president and CEO of OESA. "Suppliers continue to struggle under the weight of this economic crisis, and we are eager to work with the members of the Subcommittee in a coordinated effort to preserve the industry's employment base and technology innovation going forward."
Because current loan limits do not typically cover the investments suppliers make to assist with the design, engineering and tooling for a part on a new vehicle program, the groups are asking for an increase in loan limits for programs within the Small Business Administration.
The industry associations also asked Congress to pass legislation such as the IMPACT Act and the Advanced Vehicle Technology Act, which provide both original equipment and aftermarket suppliers with more funding for research and development and retooling.
"The supplier industry remains at a crossroads," said Bob McKenna, president and CEO, MEMA. "It will require the conscious efforts of the industry, lending institutions, and federal and state governments to provide a stable environment in which the industry can restructure."
In a presentation to the Senate Banking, Housing, and Urban Affairs Subcommittee on Economic Policy, Dave Andrea, vice president of industry analysis and economics for the Original Equipment Suppliers Association, spoke on behalf of OESA as well as other motor vehicle parts associations, including the Motor & Equipment Manufacturers Association and the Heavy Duty Manufacturers Association, one of MEMA's affiliates.
During his testimony, entitled "Restoring Credit to Manufacturers," Andrea asked Congress and the Obama administration to assure sufficient capital for restructuring, consolidating, and diversifying the industry. He also appealed to legislators to address the specific needs of small suppliers and create technology funding programs.
"Bankruptcies are happening, and will continue to happen," said Neil De Koker, president and CEO of OESA. "Suppliers continue to struggle under the weight of this economic crisis, and we are eager to work with the members of the Subcommittee in a coordinated effort to preserve the industry's employment base and technology innovation going forward."
Because current loan limits do not typically cover the investments suppliers make to assist with the design, engineering and tooling for a part on a new vehicle program, the groups are asking for an increase in loan limits for programs within the Small Business Administration.
The industry associations also asked Congress to pass legislation such as the IMPACT Act and the Advanced Vehicle Technology Act, which provide both original equipment and aftermarket suppliers with more funding for research and development and retooling.
"The supplier industry remains at a crossroads," said Bob McKenna, president and CEO, MEMA. "It will require the conscious efforts of the industry, lending institutions, and federal and state governments to provide a stable environment in which the industry can restructure."
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