White House Announces $1 Billion ‘Drive Forward Fund’ to Boost Auto Industry

The White House is launching Drive Forward Fund LP, a pioneering investment strategy that aims to inject up to $1 billion into small and medium-sized businesses that play a critical role in automotive supply and innovation.
The fund focuses on companies that play a key role in the modernization of the automotive sector, including suppliers of key components such as powertrains and electrical systems, as well as companies specializing in cutting-edge technologies such as Software as a Service (SaaS).

Monroe Capital was selected by the White House to support the fund, with advisory support from MEMA, The Vehicle Suppliers Association and the Alliance for Automotive Innovation.

“The Drive Forward Fund will be critical to driving growth and innovation in the U.S. automotive supply chain,” he said. To shake KoenigChairman of the Board and CEO of Monroe.

In addition to traditional automotive components, the fund will seek investment opportunities in emerging sectors such as battery component manufacturing and materials recycling. The goal is to strengthen the United States’ position at the forefront of the global automotive market.

The announcement follows a statement by the vice president Kamala HarrisThe government’s commitment to Detroit last May underscored the administration’s focus on supporting economic growth and retaining the more than 9.7 million auto industry jobs.

Monroe plans to leverage both private and potentially government-backed funds by seeking a Small Business Investment Company (SBIC) license from the U.S. Small Business Administration (SBA) to expand the fund’s reach and impact.

The Drive Forward Fund will be advised by a board of experts from across the automotive industry to ensure that investments are directed to the most influential areas of the automotive supply chain.

As the fund continues to fundraise following SBA approval, it aims not only to support the growing electric vehicle and clean energy sectors but also to provide attractive returns to its investors, consistent with the White House’s commitment to a future where everything is made in America, by American manufacturers and workers.

“Looking ahead, we believe the automotive industry is poised for transformational change, driven by advances in electric vehicles, hydrogen fuel cell technology and autonomous drive systems, among other things,” he said. Alex Parmacekportfolio manager for the fund at Monroe. “We believe that the transition to clean energy and sustainable vehicles can play a role in efforts to reduce carbon emissions and create a more sustainable supply base for OEMs and Tier I suppliers.”

“MEMA is pleased to participate in our ongoing collaboration with the White House to address industry challenges related to the transition to advanced technology vehicles and increase the competitiveness of U.S. manufacturing,” said Long AccountPresident and CEO of MEMA. “In this role, MEMA will continue to provide insights to ensure the supplier community is best served in the future.”