Treasury: GM, Chrysler launch supplier support

[ProSense]

Treasury: GM, Chrysler launch supplier support

By KEN THOMAS, Associated Press

WASHINGTON – The Treasury Department opened a $5 billion financing support program on Wednesday to help auto suppliers keep parts flowing to General Motors Corp. and Chrysler LLC as they try to rebound with billions in government aid.

The program, first announced last month, will provide government guarantees for the financing of auto parts that have been shipped to the Detroit carmakers but have not yet been paid for. The funds will be made available from the government's Troubled Assets Relief Program, or TARP, in a financial entity similar to a revolving credit.

Treasury spokeswoman Jenni Engebretsen said it "will help stabilize the auto supply base and restore credit flows in a critical sector that employs more than 500,000 American workers across the country."

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GM said in a statement that its suppliers were allocated $2 billion and the company was working to put it into operation. "This program will help suppliers access much needed liquidity during these very difficult economic times," said GM spokesman Dan Flores.

Chrysler said in a statement it would receive $1.5 billion under the program. Scott Garberding, Chrysler's senior vice president and chief procurement officer, said it would "help stabilize our supply base, preserve American jobs and ensure the continued production of quality vehicles."

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[Auggie]

1. Chrysler and GM should share some of their components...

frames, axles, drive trains, maybe even engines... they'd save a ton of money on elements most consumers think little of.