A bipartisan group of lawmakers led by Michigan Reps. Fred Upton and Debbie Dingell want U.S. House leaders to include the auto industry in the next round of coronavirus stimulus spending, reports CNBC.
“The projected economic fallout for the industry is grave,” reads a letter drafted by Upton, Dingell and seven other lawmakers from Ohio, Tennessee, Texas and Alabama, all states with big auto manufacturing plants, sent to House Speaker Nancy Pelosi and Republican Leader Kevin McCarthy.
“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.”
The lawmakers say sales are projected to drop as much as 30 percent for the year. Many automakers suspended operations because of safety concerns due to COVID-19, though some have announced plans to resume production later this month – GM, Fiat-Chrysler and Ford included.
One option being discussed to alleviate strain on the auto industry is an update version of “cash for clunkers,” a program that gave customers as much as $4,500 to trade in older, less fuel-efficient vehicles for new cars.
“I think that anything that stimulates demand in these early days that is simple and goes directly to the customer, those purchasing the vehicle, I think that is going to be helpful to get people back into the market,” GM CEO Mary Barra said during a conference call with analysts.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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