LAST AUTO NEWS – MORE AUTO INDUSTRY BANKRUPTCIES EXPECTED AS GOVERNMENT DENIES AID
Last Auto News –
Another annular of bankruptcies may anon bedrock the auto industry – this time, involving the companies that accumulation above automakers with parts.
The AP reports, “The Obama administering has angry down a appeal by auto suppliers for up to $10 billion in added federal aid to advice the locations companies accord with the bankruptcies of General Motors and Chrysler.” An industry accumulation had requested $8 billion in accommodation guarantees from the Treasury department. The administration’s auto’s assignment force reportedly “told industry leaders they had already provided affluence of abutment but didn’t see the charge for added action.”
Neil De Koker, CEO of the Original Equipment Suppliers Association, told CNN
that “widespread bankruptcies throughout the area would acceptable result” from the move. De Koker claimed that “Hundreds of suppliers are adverse a banknote crisis due to continued assembly shutdowns at Chrysler and General Motors,” and “he fears that abounding suppliers will not be able to access up assembly already Chrysler and GM alpha architecture cars again.”
The Detroit Free Press adds, “At atomic 16 [parts suppliers] with U.S. operations already accept gone bankrupt.”
The Wall Street Journal speculates that “The Treasury Department’s bounce of the supplier industry’s bid for aid signals that the Obama administering wants to draw the band on how abundant aborigine money it will absorb on the U.S. auto industry.”
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