WASHINGTON, Sept 26 (Reuters) – U.S. auto suppliers asked President Joe Biden on Tuesday to support auto parts companies affected by the ongoing United Auto Workers strike against three Detroit companies. It called for federal assistance to be provided.
In a letter seen by Reuters, the Automotive Components Association (MEMA) called on Mr. Biden to “make effective use of federal support to ensure the survival of this critical industry sector. Without it, the auto industry’s ability to resume full manufacturing capacity is at risk.”
The group is calling on the Biden administration to provide low-interest loans and consider loan forgiveness for distressed small suppliers. Biden is heading to Detroit on Tuesday to express his support for the UAW workers’ strike.
The White House had no immediate comment on whether it was considering a program to help auto suppliers, and has declined to comment in the past.
The ongoing strike has already forced some auto suppliers to cut production and furlough some employees. The letter cited “pressing concerns” for small suppliers with less than $200 million in revenue. It called on the Biden administration to establish Small Business Administration programs and other agencies “to preserve workforce and operational capacity.”
Reporting by David Shepardson; Editing by Franklin Paul and Chris Reese
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