Friday, March 20, 2009
The U.S. Department of the Treasury announced on March 19 the launch of a new $5 billion program to help stabilize the auto supply base. The Auto Supplier Support Program will provide up to $5 billion in financing, giving suppliers the confidence they need to continue shipping parts, pay their employees and continue their operations.
"The Supplier Support Program will help stabilize a critical component of the American auto industry during the difficult period of restructuring the lies ahead, " said Treasury Secretary Geithner. "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. "
"We greatly appreciate the announcement today by U.S. Treasury Secretary Timothy F. Geithner of the Auto Supplier Support Program that will provide up to $5 billion in financing to auto suppliers, enabling them to continue shipping parts, paying their employees and producing the diverse products essential to the auto industry, said John Engler, President of the National Association of Manufacturers (NAM). "We believe this is a common sense proposal that assures suppliers they will be paid for work already done, and have the confidence to invest in the necessary equipment for restructuring and reengineering the cars of the future. This action will help us preserve many important, highly-skilled jobs and lay the groundwork for economic recovery."
The program provides suppliers access to government-backed protection that money owed to them for the products they ship will be paid no matter what happens to the recipient car company.
To learn more, view the U.S. Department of Treasury Release.
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