Suppliers make pitch for federal auto loans

Auto parts suppliers flooded Capitol Hill on Friday to make their case for $25 billion in federal loans for the industry, as the Bush administration declined to say if it supports the funds.

The Motor and Equipment Manufacturers Association, the trade group for the parts industry, said it met with more than 40 lawmakers Friday.

MEMA officials share a list of demands with automakers, asking Congress to pay for the loans and broaden the number of plants they can be applied to.

MEMA members also pressed Congress to force the U.S. Department of Energy to write the rules quickly governing how the loans will be made.

Auto industry executives say if such rules aren’t completed by the end of this year, it could take up to six months for the next administration to finish the rules and begin lending money.

The loans were approved as part of last year’s energy bill setting fuel economy standards of 35 m.p.g. by 2020.

The Congressional Budget Office has estimated that the loan program will cost $7.5 billion, mainly in reserves for defaults, an estimate that the industry disputes.

“Without these funds, it will prove difficult for many suppliers to participate in the new vehicle platforms mandated in the legislation,” said Ann Wilson, senior vice president for government affairs at MEMA.

White House spokeswoman Dana Perino declined Friday to say whether the administration would support a move by Congress to pay for the loans.

Presidential candidates Barack Obama and John McCain support the industry’s pitch.