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Auto Suppliers Raise Alarms on New Push Backs in Resuming Operations

Major U.S. auto suppliers told Michigan Governor Gretchen Whitmer they’re able to restart production and raised the alarm about new push backs to resuming operations.

Auto Suppliers Raise Alarms on New Push Backs in Resuming Operations

Because of the coronavirus pandemic, most auto suppliers paused operations in late March as auto manufacturers closed their plants. Now uncertainty about when Michigan will allow the resumption of operations is inflicting delays all through the U.S. auto business.

The group asked Whitmer to provide explicit authority for automotive suppliers to resume their operations in Michigan at least five days before OEM manufacturing begins.”

Auto suppliers in Michigan make use of around 125,000 individuals and are generally paid 45 days after production. Automotive business executives say that means some smaller suppliers are in danger of running out of cash in the coming weeks.

Earlier this week, Volkswagen AG, as well as Toyota Motor, pushed back the planned resumption of U.S. auto manufacturing and cited auto provider issues as a factor.

Whitmer’s workplace didn’t instantly comment, but she has held regular discussions with the United Auto Workers (UAW) union and high executives of Detroit’s Large Three automakers, officials say.

The UAW said last week that it was “too quickly and too risky” to reopen auto factories in early May.

The letter noted the dependence of U.S. auto production on Michigan-based suppliers.

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