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COVID-19 pandemic: Motor Equipment Manufacturers Association in US seeks government aid
20 March 2020
The trade group for US auto parts makers has asked the
government for emergency grants and tariff relief to help combat
the adverse economic impact due to the coronavirus disease 2019
(COVID-19) pandemic, Reuters reported on 20 March.
The Motor Equipment Manufacturers Association (MEMA) has
requested the US congress for a manufacturing emergency assistance
grant to "keep the doors open, preserve jobs, and prevent
bankruptcies in the vital manufacturing sector." The association
also called for subsidies to relocate operations to the country.
Tariff relief on Chinese products and imported steel is the top
priority for MEMA.
Significance: The COVID-19 outbreak has badly
hurt the manufacturing industries. While China is showing signs of
recovery, Europe and United States are recording a dramatic
increase in the number of cases daily. The auto industry in Europe
has been suspending operations while the supply chain is also
taking a beating with demand dropping sharply. Some companies have
temporarily laid off employees.
General Motors and
Ford have suspended their operations in North America until
March 30. Hyundai Motor Manufacturing Alabama (HMMA) announced that
it was
suspending production after a worker tested positive for
COVID-19. Goodyear Tire & Rubber announced plans to suspend its
manufacturing
operations in the Americas through 3 April or until further
notice in response to the sudden decline in market demand due to
the outbreak.
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