Auto suppliers urge Senate

[rickaren]

Auto suppliers urge Senate to do more to help industry

Posted Monday, Oct 12, 2009, 1:21 pm in Employee News

The nation’s auto suppliers urged the Senate Friday to boost credit to the struggling industry, The Detroit News reported.

Dave Andrea, vice president, industry analysis and economics for the Original Equipment Suppliers Association, testified today before the Senate Banking, Housing and Urban Affairs Subcommittee on Economic Policy urging Congress and the Obama administration to take new steps to help suppliers, the paper said. The administration created a $5 billion supplier support program for General Motors Co. and Chrysler Group LLC tier one suppliers in March—a program since whittled down to $3.5 billion that many argue is inadequate and doesn’t cover enough suppliers, the News said.

Andrea urged the Senate to assure sufficient capital for restructuring, consolidating and diversifying the industry; address specific needs of small suppliers for sufficient capital for ongoing operations and create technology funding programs that support long-term innovation, the paper said.

But officials in the administration note that there haven’t been as many bankruptcies by suppliers in recent months as forecast. The Motor and Equipment Manufacturers Association (MEMA) had predicted 50 to 60 additional supplier bankruptcies in the months following GM’s bankruptcy filing. The MEMA noted at least 47 suppliers sought bankruptcy protection this year, including Visteon Corp., Metaldyne Corp. and Lear Corp., the story said. (The Detroit News)