LANSING (WJRT) (03/21/2020) -- Governor Gretchen Whitmer and Ohio Governor Mike DeWine are calling on the Trump administration and congress to support the auto industry during this challenging time.
The measures call for ensuring that hundreds of thousand jobs are able to weather the rapid economic deceleration brought on by the COVID-19 pandemic.
“As we work through this crisis as a nation, we must do what's right to support our auto workers, who are the backbone of America's middle class,” said Governor Whitmer. “We need swift action from the president and congress to confront these challenges and avoid devastating job losses. Our dedication to working families and businesses must transcend partisanship. That’s why we made this request together today.”
Automakers, suppliers, dealers, and others in the production chain support hundreds of thousands of jobs and contribute billions to the economy. The COVID-19 pandemic threatens the vitality of this crucial industry and jeopardizes the livelihoods of the families it supports.
Federal actions to address liquidity challenges are crucial to ensure this sector can restore production as quickly as possible and preserve the strong middle class jobs the manufacturers, their suppliers, and distribution networks provide to the people of our states.
“To mitigate the economic impact of COVID-19, we need leaders from both sides of the aisle, from local government to federal, to come together and do what’s best for our workers, our businesses, and our economy,” Governor Whitmer added. “Hundreds of thousands of families are depending on smart leadership. My fellow leaders and I are committed to doing whatever is necessary to see our states through this crisis, and we’re hopeful that the president does the same.”
Federal recommendations include:
• Providing loans and loan guarantees to manufacturers experiencing substantial revenue loss;
• Allowing banking regulators to temporarily suspend and review the Liquidity Coverage Ratio and other requirements to provide supervisory flexibility for banks extending credit;
• Allowing companies to defer 2020 quarterly tax payments to preserve liquidity;
• Expanding the Federal Reserve purchase program to include Asset Backed Securities as a priority;
• Reinstituting Term Asset-Backed Securities Loan Facility (TALF);
• Expanding purchases of commercial paper (CPFF-Commercial Paper Funding Facility) to benefit all issuers; and
• Working with the Federal Reserve to utilize all available tools to ensure liquidity; specifically, consider utilizing Targeted Lending via sec.13(3) of the Federal Reserve Act and invoke “unusual and exigent” measures to lend to entities most adversely impacted by COVID-19.