In a letter signed by dozens of leading supplier executives, MEMA urged the Trump administration to engage with members of the Michigan Congressional delegation to specifically address the industry’s urgent liquidity issues necessary to successfully restart manufacturing.
“Most small and mid-sized manufacturers were not eligible for PPP (Paycheck Protection Program) funding and have been unable to receive financing through traditional means,” the letter states. “A recent industry survey indicated that 21 percent of the supplier respondents have eight weeks or fewer before declaring insolvency. Private funds will not be available to companies about to become insolvent, creating the need for government guarantees. As vehicle manufacturing resumes, these suppliers will have little ability to raise capital to pay for wages, raw materials, or other start-up costs, hampering the ability for vehicle manufacturing to return to this country. The current projections for supplier solvency assume a specific level of business recovery. If recovery is delayed or slowed, the number of companies facing financial insolvency will increase significantly.”
Read the full letter here.