Advocacy group urges Obama to include auto suppliers in energy proposal

By Dustin Walsh
CRAIN’S DETROIT BUSINESS

Published: March 27, 2013 2:34 pm ET
Updated: March 27, 2013 2:36 pm ET

Related to this story

Topics Automotive, Sustainability, Government & Legislation

DETROIT — President Barack Obama wants to steer offshore oil drilling revenue to green research — and the automotive industry wants in.

The Motor & Equipment Manufacturers Association, the Washington D.C.-based advocacy group used by the auto industry, sent a letter to the White House Monday urging the inclusion of suppliers in the proposal.

President Obama unveiled the "Blueprint for a Clean Secure Energy Future" proposal last week. The proposal would establish the Energy Security Trust to set aside $2 billion over 10 years from royalty revenues generated by oil and gas development in federal waters on the Outer Continental Shelf.

The funds are earmarked to support research into such initiatives as electric vehicles, biofuels, fuel cells and domestically produced natural gas.

The supply base accounts for 30 percent of the $18 billion research and development investment in automotive, according to MEMA. Also, 70 percent of intellectual capital and deployment of technologies comes from the supply base, the organization noted in the letter.

"This is an opportunity to take advantage of the momentum of change that is now occurring in our industry sector and to learn from the lessons of the past," MEMA President Robert McKenna said in the letter.

However, the proposal is reported to face opposition from Republicans who want to expand drilling to other areas, such as the Arctic National Wildlife Refuge in Alaska.

President Obama will also likely face opposition due to snafus in the U.S. Department of Energy's Advanced Technology Vehicle Manufacturing loan program. The $25 billion program awarded money to Ford Motor Co., Nissan Motor Co. Ltd. and others, including a $528.7 million loan to Fisker Automotive Inc. and a $249 million grant to A123 Systems LLC.

A123, which has plants in Livonia and Romulus, filed Chapter 11 bankruptcy in October, then was acquired by Chinese supplier Wanxiang Group in an auction.

Fisker's founder Henrik Fisker left the electric carmaker he founded earlier this month after the struggling company was unable to close on a deal to sell to Chinese-owned automaker Zhejiang Geely Holding Group.

MEMA was also upset over the ATVM program (Section 136 of the Energy and Security Act of 2007), claiming the DOE didn't include enough suppliers and that the current plan doesn't specify the involvement of suppliers.

"Our history with 136 would indicate that it is easy to neglect suppliers in the process," Ann Wilson, senior vice president of MEMA, said in an email. "Over 100 suppliers applied for the program and none received funding because of a narrow interpretation by DOE."


Comments

Advocacy group urges Obama to include auto suppliers in energy proposal

By Dustin Walsh
CRAIN’S DETROIT BUSINESS

Published: March 27, 2013 2:34 pm ET
Updated: March 27, 2013 2:36 pm ET

Post Your Comments


Back to story


More stories

Image

German auto supplier Dr. Schneider opens second US plant

April 17, 2014 12:57 pm ET

Dr. Schneider Kunststoffwerke GmbH, a German supplier of plastic interior auto parts, has opened a $29 million manufacturing plant in Russell Springs,...    More

EU moving closer to rules that will reduce plastic bag use by 80 percent

April 17, 2014 10:54 am ET

European Union countries could have to reduce the use of plastic shopping bags by at least 80 percent by 2019 under draft rules backed by the...    More

Huntingdon Fiberglass launching second line

April 16, 2014 2:18 pm ET

Huntingdon Fiberglass Products LLC is getting set to start up a second production line later this year and hire 15-20 new employees as it sees demand ...    More

With European Parliament vote looming, official urges bag restriction

April 16, 2014 9:56 am ET

Janez Potocnik, Europe's commissioner for the environment, told the European Parliament April 15 that plastic shopping bags are a “highly...    More

Image

Austria's Greiner building a foothold in the US rigid packaging market

April 15, 2014 1:22 pm ET

Greiner Packaging International GmbH, one of Europe's largest makers of rigid plastic packaging, now wants to make its mark in the United States.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events