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$5 billion auto supplier aid coming soon
$5 billion auto supplier aid coming soon
Posted Tuesday, Apr 7, 2009, 3:21 pm in Employee News
The U.S. Treasury Department and automakers expect to finalize a $5 billion government auto supplier aid program this week, putting money in the hands of companies shortly thereafter, the Detroit News reported.
An administration official told The News the Treasury Department hoped to finalize the program soon and said payments could start a week or so after it was finalized. The Obama administration announced on March 19 it was agreeing to provide the financing for cash-strapped auto parts suppliers to help stave off collapse of many tier one companies, the story said.
The News said a credit-insurance program run through General Motors Corp. and Chrysler LLC will allow direct 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.” According to The News, suppliers also will be able to get immediate cash payments from the fund, but at a slightly higher cost. (The Detroit News)
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Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
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