|
2020-05-19 Economy
|
|
The auto industry faces challenges worse than in 2008, lawmakers say
|
 [Politico] Auto manufacturing plants across the United States are resuming operations Monday, but it’s unclear whether production and consumer demand will ramp up enough for them to survive without federal aid.
If automakers fail to successfully restart — and bring in some much-needed cash, it could mean the loss of thousands of jobs and an economic crisis for the industry integral to North America. And it could force Congress and the Trump administration to step in with money.
"If we have to close again? Good luck. You’ll see a lot of [auto suppliers] will go out of business," said Flavio Volpe, president of Canada’s Automotive Parts Manufacturers' Association, which is in constant contact with U.S. and Mexican automakers given the close ties between the three countries.
So far, the auto industry has refrained from asking the Trump administration or Congress for aid during the coronavirus pandemic, but the decline in auto production and sales has caught the attention of lawmakers on Capitol Hill.
A bipartisan group of more than 50 lawmakers from car-producing states last week put Congress on notice that the auto industry, which was left out of House Democrats' $3 trillion stimulus, will need economic help as part of any future pandemic relief packages. Their main focus, auto industry sources in touch with lawmakers say, is to build demand for autos, which could come from offering some form of incentives for Americans to buy a new car.
"America’s motor vehicle industry must remain the heart of our nation’s manufacturing capability. The projected economic fallout for the industry is grave," wrote lawmakers, including Michigan Reps. Debbie Dingell (D) and Fred Upton (R).
"In some regards, challenges the industry face exceed those of the 2008 financial meltdown," the lawmakers wrote.
The U.S. auto industry is particularly sensitive to the word "bailout," given that an $80 billion bailout was given in 2009 to help automakers restructure during the financial crisis. 
|
Posted by Besoeker 2020-05-19 04:44||
||
Front Page|| [11132 views ]
Top
|
|
Posted by Iblis 2020-05-19 10:42||
2020-05-19 10:42||
Front Page
Top
|
|
13:26 Frank G
13:12 Regular joe
13:12 mossomo
13:11 swksvolFF
13:08 Abu Uluque
13:00 swksvolFF
12:59 Regular joe
12:55 Skidmark
12:53 Skidmark
12:52 Abu Uluque
12:50 Abu Uluque
12:49 Skidmark
12:48 NN2N1
12:46 Skidmark
12:44 Bobby
12:43 Abu Uluque
12:41 Bobby
12:38 Skidmark
12:31 swksvolFF
12:30 Skidmark
12:22 Abu Uluque
12:19 Abu Uluque
12:17 Abu Uluque
12:17 Skidmark
|
