US auto suppliers seeking federal aid
Auto suppliers have asked the Obama administration for up to $25.5 billion in loans and government guarantees to stabilize the battered US auto industry.
By Agencies |
WASHINGTON: Auto suppliers have asked the Obama administration for up to $25.5 billion in loans and government guarantees to stabilize the battered US auto industry.
Two trade groups, the Original Equipment Suppliers Association and the Motor & Equipment Manufacturers Association, made the request to the Treasury Department on Friday. The aid would prevent a shortage of parts for key vehicle models.
Suppliers asked for an initial request of up to $7 billion that would go to General Motors Corp. and Chrysler LLC so they can speed up payments to parts companies. They also want the government to guarantee up to $10.5 billion in longer-term payments automakers will owe suppliers and $8 billion in federal loans to parts makers.
Two trade groups, the Original Equipment Suppliers Association and the Motor & Equipment Manufacturers Association, made the request to the Treasury Department on Friday. The aid would prevent a shortage of parts for key vehicle models.
Suppliers asked for an initial request of up to $7 billion that would go to General Motors Corp. and Chrysler LLC so they can speed up payments to parts companies. They also want the government to guarantee up to $10.5 billion in longer-term payments automakers will owe suppliers and $8 billion in federal loans to parts makers.
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