Jamell Harris loads raw casting heads to make at the Stellantis Dundee engine complex on August 18, 2022 in Dundee, Michigan.
Bill Pugliano | Getty images
DETROIT – Six of the main political groups representing the American automotive industry join an unusual nature to put pressure on the Trump administration against 25% prices on automotive parts that should take effect by May 3.
The group – representative of franchise concessionaires, suppliers and almost all major car manufacturers – said in a letter to the Trump administration officials that future direct debits could compromise American automobile production. The letter notes that many car suppliers are already “in distress” and would not be able to afford additional cost increases, which causes broader industry problems.
“Most automobile suppliers are not capitalized for an abrupt interruption induced by prices. Many are already in distress and will be faced with production stops, layoffs and bankruptcy,” said the letter. “It only takes the failure of a supplier to lead to the closure of the production chain of a car manufacturer. When this happens, as during the pandemic, all suppliers are affected and workers will lose their job.”
The letter, dated April 21, is addressed to the American secretary of the Treasury Scott Bessent, to the secretary of the US trade department Howard Litnick and to the American trade ambassador Jamieson Greer.
It is signed by the chiefs of the Alliance for Automotive Innovation, American International Automobile Dealers Association, Autos Drive America, association of MEMA vehicle suppliers, National Automobile Dealers Association and American Automotive Policy Council.
The joint letter is unusual, if not unprecedented, for the automotive industry. Organizations rarely connect, if never, to a single joint message.
The groups say that they represent the country’s manufacturing sector n ° 1 in the country which supports 10 million American jobs in the 50 states and pumps $ 1.2 dollars in the economy each year.
Car manufacturers not represented by groups include manufacturers of electric vehicles Tesla Motors,, Rivian Automotive And Lucid group.
“President Trump indicated an opening to reconsider the 25% prices of the administration on imported automotive parts – similar to the recently approved price reduction for consumer electronics and semiconductors. It would be a positive development and welcome relief,” said the letter.
The letter occurs a week after President Donald Trump said he could “help” certain automotive companies needed more time to move or increase American vehicle production.
“I am looking for something to help some of the car manufacturers, where they go to parts that have been made in Canada, Mexico and other places, and they need a little time because they are going to do them here,” Trump said on April 14. “But they need a little time, so I’m talking about things like that.”
Auto leaders and experts said that CNBC Trump prices were more disastrous for car suppliers than car manufacturers themselves. The impact could cause a training effect through the world supply chain, they say.
Automobile managers expect a decrease in vehicle sales amounting to millions of units, higher and used prices of vehicle and increased costs of more than $ 100 billion in industry, according to Wall Street research reports and car analysts.
“We take care of more manufacturing channels and additional supplies that cross the United States, but it is not possible to relaunch world supply chains during the night or even in months. It will take time,” reads the letter.