Treasury Aid Not Reaching Auto Suppliers, Panel Told (Update1)

[Joanne98]

Source: Bloomberg


May 13 (Bloomberg) -- A $5 billion Treasury Department aid program isn’t reaching smaller auto supply companies, leaving them fighting to survive, executives told a U.S. House panel.

The Treasury program is designed to aid so-called Tier I companies that directly supply automakers such as General Motors Corp. and Chrysler LLC, not the companies that provide parts to the suppliers, said Wes Smith, president of E&E Manufacturing in Plymouth, Michigan.

Smith testified to the House Small Business Committee on behalf of the Motor Equipment and Manufacturing Association, based in Research Triangle, North Carolina. The program is designed to guarantee payment of bills from GM and Chrysler, which has filed for bankruptcy.

“Smaller suppliers are completely dependent on their first tier customers to provide financial assistance down through the supply chain,” Smith said.



Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=alLU0JQEXMiQ&refer=us