Some House Democrats and Republicans representing hard-hit auto states such as Michigan and Ohio are asking Congress to support aid for the automotive industry in upcoming legislative proposals related to the coronavirus pandemic.
U.S. representatives including Michigan Republican Fred Upton, Michigan Democrat Debbie Dingell, Ohio Democrat Marcy Kaptur and others are gathering signatures on a draft letter that was circulated among lawmakers Tuesday.
“The projected economic fallout for the industry is grave,” the lawmakers wrote in a copy of the letter obtained by Automotive News.
“Manufacturers moved swiftly to fill the desperate call for additional personal protective equipment and ventilators where they could,” the letter said. “But sales are projected to drop as much as 30 percent for the year, from over 17 million cars sold in 2019.”
All parts of the auto industry have been upended by the COVID-19 crisis and resulting economic downturn, with many automakers, suppliers and dealer groups reporting quarterly declines this week as they face an ongoing sales slump caused by the pandemic.
President Donald Trump last month signed a $484 billion spending package that provided more money for small businesses, including $320 billion to make new loans under the Paycheck Protection Program — a top priority for dealers seeking financial relief — but no coronavirus relief bills have included federal rescue money specifically for the auto industry.
Several industry and government officials also have said it will take a shot of economic incentives to get customers back into showrooms once automakers and suppliers restart production. But it won’t necessarily look like the $2.85 billion Cash for Clunkers program from 2009.
“Many businesses in the industry face a cash crunch even as they prepare to ramp back up,” the letter said. “Liquidity is challenging, particularly for suppliers, and it will be necessary to support demand for some time to ensure a meaningful recovery.”
The Washington Post earlier reported on the lawmakers’ plans.