US Senator Moves To Provide Aid To Auto-Parts Suppliers
16 Juni 2009 - 4:51PM
Dow Jones News
A U.S. senator said Tuesday he plans to introduce legislation to
provide more aid for auto-parts suppliers, after the Obama
administration turned down an industry request for more funds.
Sen. Sherrod Brown, D-Ohio, said in a statement that the
proposed legislation would "provide a new funding source to help
auto suppliers and other manufacturers retool for the clean energy
industry." He plans to unveil the proposal Wednesday on Capitol
Hill.
The plan, which Brown said has the support of business,
environmental and labor leaders, would aim to prevent a wave of
bankruptcy filings by parts companies while helping them retool to
build more fuel-efficient cars.
Trade groups warned last week that hundreds of suppliers could
collapse without further government aid as the bankruptcy filings
of General Motors Corp. (GMGMQ) and Chrysler LLC deepen the
suppliers' troubles.
Suppliers met with President Barack Obama's auto-industry task
force last week to request that the government guarantee $8 billion
to $10 billion in loans so banks will lend to the suppliers. A
Treasury Department spokeswoman said after the meeting that the
administration currently has no plans to provide more funding
beyond a $5 billion aid program put in place earlier this year.
"Last week's meeting was just one of the several steps the
administration has taken to work with auto-supply companies and
monitor supply base going forward," the spokeswoman said. "The
Supplier Support program is playing an important role in
stabilizing the supply base, protecting good-paying American jobs
and giving GM and Chrysler reliable access to the parts they
need."
"At this time, no changes have been made to funding," she added,
but the Treasury Department "will continue to monitor the
situation."
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637;
joshua.mitchell@dowjones.com