The U.S. Treasury Department today offered a $5 billion infusion of cash to the ailing auto-parts industry.
Many automotive part suppliers are waiting to be paid for parts they shipped to the cash-strapped Big Three automakers in Detroit.
The new program will provide American suppliers that agree to participate with access to government-backed protection that money owed to them for their parts they ship will be paid regardless, of what happens to the recipient car company.
The financial lifeline will help support the 500,000 American workers at companies that have been pushed to the brink amid the credit crisis and the historic decline in auto sales, according to the Treasury statement.
"The Supplier Support Program will help stabilize a critical component of the American auto industry during the difficult period of restructuring the lies ahead," Treasury Secretary Tim Geithner said. "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."
Obama administration offers lifeline for auto suppliers
Operand type clash: text is incompatible with int
advertisement
Sorry, the story you tried to comment on is not accepting comments.