BETHESDA, Md. – September 26, 2018 – The following
statement can be attributed to Bill Hanvey, President and CEO of the Auto Care
“The Auto Care Association applauds the Senate Finance
Committee for conducting a hearing today on the significantly negative impact that
tariffs on imported auto parts and automobiles will have on American companies
and American families. Our members, who represent the automotive
aftermarket industry, stand united with auto manufacturers and auto dealers
nationwide in our opposition to these tariffs.
The automotive aftermarket is a significant sector of the
United States economy, employing 4.6 million people (3.2 percent of the
workforce) and reporting sales of more than $392 billion (2 percent of the
nominal GDP). It includes 533,000 businesses that form a coast-to-coast
network of independent manufacturers, distributors, retailers and repair shops.
Imported auto parts are an integral part of the domestic
automotive aftermarket supply chain. They are used in both domestic and
imported vehicles and are sold to distributors located in every region in the U.S.
that, in turn, conduct a logistics symphony to ensure that parts are readily
available and reasonably priced for consumers who drive into their local
independent shops to service their vehicles. Tariffs will impact the
availability and pricing of those parts which will translate to higher prices
for auto repairs and delays in repair time, especially considering that there
are some parts that cannot be sourced in the U.S.
A recent economic
study completed for the Auto Care Association by John Dunham and Associates
found that a 25 percent tariff on imported auto parts could cause a reduction
of 17,800 jobs in the auto parts manufacturing sector, resulting in $1.4
billion in lost wages. Furthermore, there would be a 6,800 loss in jobs by the
repair shops and a loss of 85,200 jobs in the auto care wholesale and retail
segment which is comprised of mostly small and medium sized businesses.
The Auto Care Association urges Secretary Ross and the
President to listen to the widespread opposition to imposing tariffs on imported
auto parts and to conclude that importing these goods is not a threat to
national security but rather a necessary component of a thriving domestic
For more information about the Auto Care
Association’s trade initiatives, please visit autocare.org/trade or contact Angela
Chiang at firstname.lastname@example.org.