Covid-19: US auto industry urges lawmakers to ensure sufficient liquidity

WASHINGTON: Major automakers, auto parts suppliers and auto dealers urged the U.S. lawmakers on Monday to provide robust credit facilities to ensure sufficient liquidity in the auto industry despite the coronavirus outbreak.

Reuters says that trade groups representing the companies including General Motors Co, Volkswagen AG and Toyota Motor Corp, said in a letter Monday that Congress should set up facilities to provide loans and loan guarantees to large employers, medium-size manufacturers and small businesses.

The letter also noted that analysts expect U.S. auto sales to fall by 90 percent in March 2020 as about 95 percent of U.S. auto plants are currently closed due to the Covid-19 virus outbreak. These shutdowns are directly impacting about 165,000 workers.

Meanwhile, the South Korean government has announced that it will help the country’s auto industry qith liquidity push. The South Korean government has said that it will speed up customs clearance, arrange freight transportation and provide liquidity support for the industry that employs around 12 percent of the country’s total workforce.

The coronavirus pandemic has led to shutdowns at auto factories and dealerships in the United States, Europe and Asia. These shutdowns are expected to affect South Korean automakers like Hyundai Motor Co and Kia Motors Corp.

The country’s Industry Minister Sung Yoon-mo said, “It’s time to prepare for the shock of a global demand contraction and European supply issues.” However, the country didn’t reveal the amount of the liquidity to be provided to the auto industry.

Source:https://bit.ly/2WGAkgH