Subscribe
Close
  • Free for qualified executives and consultants to industry

  • Receive quarterly issues of Area Development Magazine and special market report and directory issues

Renew

Auto Suppliers to Get $5 Billion in Treasury Aid

03/19/2009
Companies that supply U.S. automakers will be given access to aid from the U.S. Treasury Department as part of a program announced today. Treasury says that General Motors (GM), Chrysler, and Ford can provide the names of their suppliers that wish to receive funds and those suppliers will have access in a structure similar to a revolving line of credit. The automakers will be required to pay Treasury a fee of up to $250 million to participate. "The Supplier Support Program will help stabilize a critical component of the American auto industry during the difficult period of restructuring that lies ahead," says Treasury Secretary Timothy Geithner in a statement. "The program will provide supply companies with much needed access to liquidity to assist them in meeting payrolls and covering their expenses, while giving the domestic auto companies reliable access to the parts they need." Several large auto suppliers have indicated in recent weeks that they may be forced to file for bankruptcy protection without government assistance. The Associated Press reports that GM and Chrysler will use the program, but Ford has opted out; Ford is the only one of the three automakers that has not accepted government bailout funds.

Follow Area Development

Share