USTMA calls for economic relief for US tyremakers amid coronavirus

Author: Tracy Dang

2020/03/23

HOUSTON (ICIS)--A US tyre group is urging lawmakers to enact policies that would provide economic relief to tyre manufacturers and their workers amid production disruptions due to the coronavirus.

“Our members play an essential role in ensuring safe and reliable transportation, particularly in emergencies,” said Anne Forristall Luke, president and CEO of the US Tire Manufacturers Association (USTMA).

“Ensuring the health and well-being of the nearly 100,000 dedicated individuals working to manufacture tyres in the US is of paramount concern to our member companies.”

In its letter, the USTMA asked US Congressional leaders to:

  • Enact laws to provide relief to employees dealing with disruptions and provide tax credits for employers who offer workers these benefits, including employers above the 500-employee threshold.
  • Temporarily suspend the collection of employer-paid payroll taxes and cancel these taxes for at least March, April and May.
  • Ensure cross-border trade, particularly within North America, is not adversely affected by policies aimed to contain the coronavirus spread.

“Our 13-member companies operate 58 tyre-related manufacturing facilities in 17 states and generate more than $27bn in annual sales,” the letter said.

“Tyre manufacturing is an essential industry that directly supports more than a quarter million US jobs – totalling almost $20bn in wages - across every congressional district in the country.”

Goodyear, Bridestone, Michelin and Cooper Tires are among major tyremakers that are suspending production at their North American operations because of coronavirus impacts.

Also, several automakers, including the US Big Three and Honda, are temporarily closing plants in North America.

Visit the ICIS coronavirus topic page for analysis of the impact on chemical markets and links to latest news.

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