President Barack Obama has held a meeting with a number of major American and multinational companies -- including carmakers Honda, Nissan and Toyota – to discuss an initiative that entails speedy payout to smaller suppliers and aimed at helping them expand and employ more people.
The president rekindled the companies’ pledge to pay smaller suppliers within 15 days, which should help them have more funds to invest and create employment. The initiative means larger companies could ensure that their suppliers are financially sound, the White House said in a statement, adding that the effort “demonstrates a recognition that a healthy supply chain is good for business.”
Among those who attended the meeting was Rick Schostek, executive vice president of Honda North America Inc., as well as Billy Vickers, CEO of Modular Assemblies Innovations.
According to Honda, it has helped Modular Assemblies by offering tweaked payment terms; helping it purchase expensive components; and providing engineering assistance. Schostek said in a statement said Honda recognizes that small suppliers work on tight budgets with capital as a premium.
He remarked that such constraints can suppress growth, innovation and efficiency. Upset with a legislative impasse with the House of Representatives, Obama has pledged to act unilaterally when he can to fulfill his agenda – one of which is the initiative recently announced.
Obama’s approach, however, has riled congressional Republicans who claimed that the president has gone beyond executive branch authority. House Republicans recently made public a “discussion draft” of legislation allowing legal action against Obama for misusing executive orders and other unilateral actions to advance his agenda.