Printer Friendly
The Free Library
23,403,340 articles and books


US pumps $5.0 bln in support of auto suppliers

The US Treasury Department Wednesday launched a five-billion-dollar scheme to guarantee product payments to embattled auto suppliers that have been hammered by the auto industry slump and tight credit.

Government-rescued General Motors and Chrysler launched the taxpayer-backed support programs, the Treasury said.

Under the Treasury's auto supplier support program announced in mid-March, up to five billion taxpayer dollars will guarantee money owed to auto suppliers for the products they ship even if the US automaker goes bankrupt.

Auto suppliers that typically wait between 45 and 60 days for payment can now seek public guarantees on the money owed in order to obtain loans. Suppliers have been hamstrung amid a global financial crisis that has seized up credit.

"These efforts, backed by US Treasury resources, will help stabilize the auto supply base and restore credit flows in a critical sector that employs more than 500,000 American workers across the country," said Jenni Engebretsen, a Treasury spokeswoman.

GM and Chrysler have received a combined 17.4 billion dollars in public aid since December, and are still on the verge of collapse as the world's largest economy suffers its second year of recession.

President Barack Obama's administration has demanded they submit viable restructuring plans before further aid will be considered.

Copyright 2009 AFP Global Edition
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright (c) Mochila, Inc.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Author:AFP
Publication:AFP Global Edition
Date:Apr 8, 2009
Words:206
Previous Article:Three British managers held in French 'bossnapping'
Next Article:Heartburn medication not effective for asthma: study



Related Articles
POLYBUTYLENE.
ETHYLENE VINYL ACETATE COPOLYMER.
Buyer's guide to thermoplastics.
U.K. Treasury to Announce Details of the Bank Rescue Plan (Update).
U.K. Mortgage Approvals Hold Steady at 31K, PMI Dropped Lower.
U.K. Budget Deficit Swells Tax Revenues Falter.
US pumps 5.0 bln dlrs in support of auto suppliers

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters