Auto suppliers press government for credit

Wes Smith, president of E&E Manufacturing in Plymouth, Mich., on behalf of the Motor & Equipment Manufacturers Association, told the House Financial Services Committee that auto supply companies lost 100,000 jobs over the past three years.

In addition, "the Bureau of Labor Statistics estimates that automotive suppliers will lose an additional 100,000 jobs over the next decade," he said.

Access to credit "continues to be a pervasive issue for parts manufacturers -- particularly small suppliers," Smith said.

Smith pressed for support for the Manufacturing Modernization and Diversification Act, which he said would mimic a program in Michigan that lent $12 million to auto suppliers in its first five months in 2009.

Despite the federal government's "noteworthy actions" to help the automobile industry weather the recession, "50 U.S. suppliers filed for bankruptcy in 2009 and up to 200 suppliers may have liquidated," Smith said.

"Many other companies are undergoing out-of-court restructurings with drastic cost cutting measures," he said.

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