US Auto Suppliers To Press For Up To $10 Billion In New Federal Aid
09 Juni 2009 - 4:06PM
Dow Jones News
U.S. auto-parts suppliers plan to ask the Obama administration
for up to $10 billion in new aid to forestall an industry crisis
brought on by the bankruptcies of General Motors Corp. (GMGMQ) and
Chrysler LLC.
Supplier trade groups plan to propose several new aid programs
totaling between $8 billion and $10 billion, said Ann Wilson, of
the Motor and Equipment Manufacturers Association. More details
were expected later Tuesday, and a proposal could be formally
presented to the Obama administration this week.
"We have an immediate crisis that needs to be addressed," Wilson
said.
Suppliers, already hurt by the downturn in auto sales and
broader recession, are facing a deeper crisis because of the idling
of plants and slowdown in production associated with the
bankruptcies of GM and Chrysler.
The Treasury Department created a $5 billion program this year
to help the supply base by guaranteeing GM's and Chrysler's
payments to suppliers. But supply groups have maintained the aid is
far smaller than they need.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637;
joshua.mitchell@dowjones.com