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Letter to the Hon. Nancy Pelosi, Speaker of the House and the Hon. Kevin McCarthy - Upton, Bipartisan House Leaders Urge Strong Support for Auto Industry & 10 Million American Workers

Dear Speaker Pelosi and Minority Leader McCarthy:
We write to request consideration of provisions to support jobs and economic
stabilization of the motor vehicle industry in future COVID-19 pandemic legislative proposals.
Nearly 10 million jobs, representing 5 percent of private American employment, are driven by
this sector. As you well know, fourteen automakers build cars and light trucks in America. The
motor vehicle industry depends on a complex network of thousands of companies supplying
parts, components and materials, to giant production platforms, employing thousands of workers,
as well as a vast retail and vehicle maintenance network of dealers. The auto sector has such an
expansive reach to every state, delivering economic benefits, creating jobs in so many different
sectors in every Congressional district, and leading America into a new era of innovation in clean
energy and mobility solutions. In many communities, production plants are the spine of the local
economy.
Through this global pandemic, the importance of domestic manufacturing has reemerged
broadly. As the Congressional Auto Caucus has highlighted for years, there is little denying the
need to reexamine and adjust supply chains and focus efforts to strengthen our manufacturing
base.
The automotive manufacturing base and resulting industry has been hit hard by the
economic stress of the COVID-19 crisis. Represented by manufacturers, suppliers, dealers, and
many auto affiliated businesses, the automotive industry employs roughly 10 million American
workers. Annually it drives more than $953 billion into the economy through the sales, servicing
of autos, and paychecks for workers throughout the sector, as well as income for auto-related
small business, and government revenues. Historically, the vehicle industry has contributed 3-3.5
percent of America's total gross domestic product and 5.1 percent of private-sector employment.
America's motor vehicle industry must remain the heart of our nation's manufacturing
capability.
The projected economic fallout for the industry is grave. Manufacturers moved swiftly to
fill the desperate call for additional personal protective equipment and ventilators where they
could. But sales are projected to drop as much as 30 percent for the year, from over 17 million
cars sold in 2019. April was the worst month in decades for car sales. Rental car companies
struggle on the brink of closing forever. Many businesses in the industry face a cash crunch even
as they prepare to ramp back up. Liquidity is challenging, particularly for suppliers, and it will be
necessary to support demand for some time to ensure a meaningful recovery. In some regards,
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challenges the industry face exceed those of the 2008 financial meltdown. As workers begin to
be called back during the COVID-19 pandemic, serious challenges confront the protocols under
which this must be organized to assure worker safety. Significant organizational costs will attend
to this process.
We look forward to working with you to craft a prudent response. Given the enormity of
the industry's economic footprint throughout our nation and its significant legacy, we seek your
assurance that an appropriate response will be included so that American workers in the
automotive industry can help drive a robust recovery.


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