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No aid for auto suppliers
Feds: Auto suppliers don’t need aid
Posted Wednesday, Jun 17, 2009, 1:48 pm in Employee News
Even as two more high-profile auto suppliers face the possibility of bankruptcy this month amid signs the industry’s woes are spreading, the U.S. Treasury believes the supply chain is stable enough that more federal aid is not needed immediately, The Detroit News reported.
In a consolation that offers little hope for now, the U.S. auto task force said it will step in if the supply chain unravels and vehicle assembly plants are forced to close due to parts shortages, Neil De Koker, president of the Original Equipment Suppliers Association, which requested the aid, told the paper. The setback came as more cash-strapped auto parts makers show signs of collapsing amid a sharp decline in North America car and truck output, the News said.
Novi-based Cooper-Standard Automotive missed a key interest payment this week, and bankrupt Metaldyne Corp. said Tuesday it would seek court approval to sell much of its business to a private equity firm, the paper said. About 20 suppliers have already filed for bankruptcy this year and the number is expected to increase over the next 30 days, the story said. (The Detroit News)
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