US auto industry backs tax relief, delaying USMCA start after coronavirus

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Groups representing major automakers and suppliers asked U.S. lawmakers on Friday to consider new tax relief and delay the start of a new trade ...

Groups representing major automakers and suppliers asked U.S. lawmakers on Friday to consider new tax relief and delay the start of a new trade deal as auto sales decline as a result of the coronavirus pandemic.

The proposals come as major automakers are temporarily closing plants and cutting production. On Friday, BMW AG became the latest to announce a production halt.The Alliance for Automotive Innovation - representing General Motors Co, Volkswagen AG , BMW, Toyota Motor Corp and others - and the Motor & Equipment Manufacturers Association in a joint letter seen by Reuters backed"key actions" by U.S.

Automakers and suppliers back a series of actions to boost the industry including delaying the planned June 1 entry into force date for the new USMCA North American trade deal. Automakers warn the fast approaching date puts undue compliance pressures on them to comply with new rules of origin. "The auto industry, like so many industries is going to be severely harmed by the dramatic economic downturn over the coming months," Honda executive vice president Rick Schostek wrote, adding that companies based outside the United States but with significant American operations should not be"arbitrarily barred from any federal assistance or regulatory relief."

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