Earlier this year, I sent a letter to some of our elected officials in Washington spelling out MEMA's policy priorities for the new legislative year. Here's a brief overview of the top items.

Tax incentives for safety technology

The National Highway Transportation Safety Administration (NHTSA) estimates that 42,000 Americans die each year as a result of six million crashes on American highways — an equivalent of 115 deaths each day, or one death every 13 minutes. At the same time, electronic stability control, active cruise control and vision warning systems are just a few of the many fascinating technologies being developed by auto suppliers making today's — and tomorrow's — cars and trucks safer to drive.

The challenge is to make these life-saving technologies available to as many Americans as possible, and a tax credit is one avenue to do just that. That's why MEMA is supportive of Congressman Mike Roger's (R-Mich.) bill that will provide consumer tax incentives of up to $1,000 for the purchase of vehicles with advanced safety technologies.

Pension and health care reform

These have been lumped together because I view them as the two-headed monster that continues to stalk much of our industry. If we don't see serious reform in both areas, the effects could be devastating. With pensions, our members want a system they can count on. By that I mean they will need sufficient time to transition to new funding targets. They will need predictable and fair funding rules. Since the auto industry can be cyclical in nature, we believe employers should be able to pre-fund benefit plans in good economic times.

Nearly every U.S. business today is concerned with the need for health care reform. While there are no easy answers, a number of bills have already been introduced in Congress to improve the situation. In a nutshell, auto and truck suppliers — and the business community in general — favor lowering costs by making use of modern electronic information exchange.

We also must find a way to contain the costs of chronic illnesses such as cardiovascular disease, diabetes and asthma, which represent 70 to 80 percent of all health care costs. Part of the solution might include providing incentives for wellness and active care programs. We also need to take a look at medical liability reform because there's no doubt that excessive litigation and high medical malpractice insurance rates have contributed to soaring health care costs. In addition, we believe expanded use of Health Savings Accounts and allowing small businesses to band together to purchase coverage would help reduce overall health care costs.

Rising raw material costs

All auto suppliers rely on stable markets for the materials needed to manufacture their components.

Unfortunately, many of those markets have become very unstable due, in large part, to the unintended consequences of government policies. Imported steel is a good example. A series of U.S. duties on certain kinds of imported steel are in place, putting upward pressure on all forms of steel — imported and domestic — at a time when many steel customers are facing bankruptcy and job losses.

As a simple matter of fairness and to create a level playing field for the industry, MEMA will seek the introduction of legislation providing industry users of steel and other raw materials a place at the table when anti-dumping or countervailing duties are being debated at the International Trade Commission.

Combating counterfeit auto parts

The manufacture and trafficking of counterfeit auto parts is a serious problem facing auto suppliers. A wide range of fake components is entering our marketplace, and these include many safety-related parts such as brakes, belts, hoses, tires and structural parts. The good news is that there are several bills in Congress, which MEMA supports, to give federal law enforcement and the courts stronger laws to combat counterfeiting. One such bill would allow federal authorities to seize the fake parts and the tooling, equipment and supplies necessary to produce them.

It has been estimated that automotive suppliers lose $12 billion in sales each year because of product counterfeiting. Our goal is to gain increased enforcement by all the relevant law enforcement agencies — domestic as well as foreign — and shut down these criminals.

With these and other issues on our plate, 2006 is shaping up as a crucial legislative year for our industry, and we look forward to the challenges and opportunities ahead. With more than 1.2 million employees and our industry supplying nearly two-thirds of U.S. vehicle content, we believe it's essential to make our message heard. It's a big job, and it will require the support of our members. Together, we can work to keep the automotive supplier industry what it has always been — a true cornerstone of American manufacturing, while keeping in mind what it is and will continue to be — a leader in safety and innovation, which MEMA is very proud to represent.

Bob McKenna is president and CEO of the Motor & Equipment Manufacturers Association, which represents more than 700 manufacturers, nearly 12,000 U.S. plants and 830,000 workers. Visit www.mema.org.