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Getbig Main Boards => Politics and Political Issues Board => Topic started by: Bindare_Dundat on February 13, 2009, 05:34:50 PM

Title: Auto parts makers ask for $25.5B in aid
Post by: Bindare_Dundat on February 13, 2009, 05:34:50 PM

Assistance would come in the form of loan guarantees and help in speeding payments.

A group representing auto parts suppliers has asked the Treasury Department for a total of $22.5 billion in financial assistance.

The Motor & Equipment Manufacturers Association and an affiliated group, the Original Equipment Suppliers Association, have submitted a request for loan guarantees and assistance to car manufacturers to help them pay their suppliers' bills more quickly.

The request includes $10.5 billion set aside to guarantee loans taken out against invoices payable by domestic automakers, $8 billion to guarantee other types of commercial loans and $7 billion to help General Motors and Chrysler pay their suppliers more quickly.

Auto parts suppliers make the various components out of which cars and trucks are built. With vehicle sales down 36% from their levels a year ago, struggling automakers are rapidly scaling back production. That, in turn, has hurt auto parts suppliers.

Title: Re: Auto parts makers ask for $25.5B in aid
Post by: Soul Crusher on February 16, 2009, 06:38:57 AM

Unless we have a war to support new vehicles with, I dont see how they can keep their current staff and overhead with much lower car sales.