NAFA and AFLA Urge Passage of Bridge Loan to Detroit Three
PRINCETON, NJ – Both the NAFA Fleet Management Association and the Automotive Fleet & Leasing Association (AFLA) have sent formal letters to the U.S. Congress to provide financial assistance to General Motors, Ford, and Chrysler.
On Monday, Dec. 1, NAFA described the current automotive industry situation as "grim," stating that there is "little time to act." Below are excerpts from the letter sent to the to the Majority Leader of the U.S. Senate, the Minority Leader of the U.S. Senate, the Speaker of the House of Representatives, the Minority Leader of the House of Representatives, and the leaders of the Alliance of Automobile Manufacturers.
"An immediate financial stimulus for the U.S. automobile industry is imperative. The Center for Automotive Research estimates that the failure of General Motors would eliminate 12.5 million jobs during the first year. This cannot be allowed to happen.
Commercial and government fleets are particularly reliant on the domestic automakers. When purchasing fleet vehicles, our ability to obtain ongoing parts and support is critical. We need the domestic manufacturers, their parts suppliers, and their dealer networks to survive."
Click below to read the full text of NAFA's letters to:
Speaker of the House Nancy Pelosi and House Minority Leader John Boehner
Senators Harry Reid (Senate majority leader) and Mitch McConnell (Senate minority leader)
Last Wednesday, Nov. 26, the following letter was also sent to these leaders by AFLA. Below is the text of the letter:
"The Automotive Fleet & Leasing Association (AFLA) urges Congress to come to the assistance of the U.S. automobile industry. We fear that failure to do so will have dire consequences to the U.S. economy, resulting in the unemployment of millions of Americans. It is crucial that Congress passes an immediate financial stimulus package for the U.S. automobile industry.
AFLA is a 40-year old industry association representing the U.S. commercial fleet management industry. We have more than 300 member companies representing all industry segments, including: corporate fleets; fleet leasing companies; automobile dealerships; auction companies; fleet maintenance and repair companies; and many other specialized suppliers.
General Motors, Ford Motor Co., and Chrysler are key suppliers of vehicles to the U.S. commercial fleet management industry. The vitality of domestic automobile manufacturers is crucial to the economic well-being of the fleet management industry.
Congressional financial assistance in the form of a bridge loan is critical since the credit lines normally available to the automobile industry are now frozen. The limited availability of credit is also impacting vehicle leasing companies. The government's financial aid also must include solutions for these companies.
AFLA urges you to implement immediate assistance to the U.S. automotive industry for the well-being of the commercial fleet management industry and the greater well-being of the U.S. economy."