Auto makers and parts suppliers hail President Bush signing off on a $25 billion loan package to help build vehicles with greater fuel efficiency, but also take the opportunity to press lawmakers for a resolution to the credit crisis.
“On behalf of our 10 member companies representing nearly 80% of the U.S. new-car sales market, the Alliance of Automobile Manufacturers strongly urges Congress and the Administration to come together swiftly to stabilize the credit market,” says Dave McCurdy, president and CEO-Alliance of Automobile Manufacturers.
AAM lobbies in Washington on behalf of auto makers such asCorp., Motor Co. and Motor Corp.
McCurdy says with 90.0% of all new-vehicle sales financed with credit, “it is crucial to our industry’s survival that consumers have the ability to borrow money.”
A recent spate of collapses involving Wall Street investment banks, brokerages and smaller regional banks due to an implosion of the subprime mortgage industry earlier this year has restricted borrowing between banks. That, in turn, limits the funds banks can make available for consumer loans.
A $700-billion bailout would relieve the credit pressures, proponents of the Congressional plan say. But the plan was torpedoed Monday and lawmakers continue to tinker with its structure.
“We commend the bipartisan leadership of Congress and the Administration for their efforts to craft a compromise and urge Congress to quickly pass, by the end of this week, a financial rescue package that aids both the credit markets and the ability of consumers to finance vehicle purchases,” McCurdy says in a statement.
The Motor & Equipment Manufacturers Assn., which represents parts suppliers, expressed similar sentiments today.
“We are particularly concerned that already tight credit will grow scarcer, further adversely impacting our access to needed capital and consumer access to credit to support automotive and commercial vehicle sales,” says Bob McKenna, president and CEO-MEMA. “Without immediate legislative action, the current problematic situation in the motor vehicle and motor vehicle supplier industry could become even worse.”