Treasury Announces $5 Bil Program for Auto Parts Suppliers
On March 19, 2009, the U.S. Department of the Treasury announced a new Auto Supplier Support Program designed to provide ailing U.S. auto parts suppliers with up to $5 billion in financing. The program is designed to stabilize the auto supply base and restore credit flows, thus “giving suppliers the confidence they need to continue shipping parts, pay their employees and continue their operations.”
According to a fact sheet (PDF) provided by Treasury, the program is designed to offer government-backed protection to parts manufacturers, ensuring they will receive money owed them for the products they ship, no matter what happens to their customers in the auto industry. General Motors Corp. and Chrysler L.L.C. already have signed on, the agency said.