Auto Suppliers To Seek Billions More In Gov't Aid

CHIP CUTTER

NEW YORK (AP) — Automotive parts suppliers plan to seek an additional $8 billion to $10 billion in loan guarantees to help them weather a bleak auto sales environment and the bankruptcy court restructuring of major customers GM and Chrysler.

The Original Equipment Suppliers Association and Motor & Equipment Manufacturers Association said they plan to request the federal aid Wednesday from the U.S. Treasury Department to help provide capital to suppliers stung by the declines in the auto industry.

President Barack Obama's auto industry task force already initiated a $5 billion financing support program in April to keep parts flowing to GM and Chrysler. It also provided government guarantees for financing of parts that were already shipped to automakers but had not been paid for.

But trade association officials say more guarantees are essential for ailing parts suppliers who are facing revenue shortfalls as auto plants are idled or closed.

Neil De Koker, president and CEO of the Original Equipment Suppliers Association, said many suppliers can't request money from banks, due to the credit crunch, but have little revenue coming in to support their operations.