The NAM sent a Key Vote letter to the House and Senate yesterday supporting H.R. 7321, the Auto Industry Financing and Restructuring Act. The gist:
As the country’s largest manufacturing sector, the automotive industry accounts for approximately 20 percent of our manufacturing GDP and close to one million jobs in America. We simply cannot afford to let the auto industry fail.
Financial and market instability, an ongoing credit squeeze, and closed capital markets have drained the liquidity from automakers’ operations. Auto sales have plummeted along with consumer demand and confidence, cutting back significantly on automakers’ revenue. The auto industry in America cannot be sustained under these extraordinary economic conditions without additional support.
The serious economic troubles affect far more than just major auto companies. The automotive industry is highly integrated and all of the automakers in America share many of the same suppliers. Auto parts suppliers employ 600,000 people concentrated in seven states. A failure of one automaker could have a crippling impact on the entire supply chain and reverberate throughout the U.S. economy, affecting both people in the industry and many more who provide services – such as insurance, advertising and food – to people in the auto industry.
The auto industry is in dire need of relief today, and such relief should be seen as a critical component in our overall effort to restore confidence to consumers and investors, and stabilize the economy. A stable auto industry is critical to our nation’s economic recovery.
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