Treasury launches $5 billion supplier aid program

[firedupdem]

http://detnews.com/article/20090408/AUTO01/904080408/Treasury+launches+$5+billion+supplier+aid+program

The Treasury Department finalized its program to offer up to $5 billion in short-term financing for auto suppliers today, clearing the way for parts makers to start getting quick cash payments and credit insurance within a week.

The funds will help support companies that supply parts and equipment to General Motors Corp. and Chrysler LLC, which are operating under $17.5 billion in federal loans.

"The U.S. Treasury Department is pleased that both GM and Chrysler have moved quickly to launch Supplier Support programs," Treasury spokeswoman Jenni Engebretson said. "These efforts, backed by U.S. Treasury resources, 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.

"During this difficult period of restructuring in the auto industry, the Supplier Support program will provide supply companies with access to liquidity and protect good-paying American jobs while giving GM and Chrysler reliable access to the parts they need."

GM will receive $2 billion initially and Chrysler between $1 billion and $1.5 billion.