US Treasury Launches $5 Billion Auto Supplier Support Program
08 April 2009 - 3:46PM
Dow Jones News
The U.S. Treasury Department Wednesday launched its $5 billion
effort to help stabilize struggling domestic auto suppliers, saying
the program will protect U.S. jobs and give General Motors Corp.
(GM) and Chrysler LLC access to needed auto parts.
While the Treasury department is providing the financing through
its $700 billion financial bailout fund, Chrysler LLC and GM are
the decision-makers. Treasury said suppliers interested in
participating in the program should contact Chrysler and GM
directly.
"The U.S. Treasury Department is pleased that both GM and
Chrysler have moved quickly to launch Supplier Support programs,"
said Treasury spokeswoman Jenni Engebretsen in a statement
Wednesday morning. "These efforts, backed by U.S. Treasury
resources, will help stabilize the auto supply base and restore
credit flows in a critical sector that employees more than 500,000
American workers across the country."
Engebretsen said that the program will provide supply companies
access to liquidity and protect good-paying U.S. jobs while giving
GM and Chrysler "reliable access to the parts they need."
-By Maya Jackson Randall, Dow Jones Newswires; 202-862-9255,
maya.jackson-randall@dowjones.com