Auto suppliers to seek new government aid: report
U.S. auto suppliers, who negotiated federal loans earlier this year, plan to ask the Obama administration’s auto task force this week for $8-$10 billion in loan guarantees, Bloomberg reported on Tuesday.
Industry trade groups plan to request the U.S. Treasury to back at least a part of loans for auto suppliers from banks to reduce risk and increase lending, the news agency said, citing Neil De Koker, president of the Original Equipment Suppliers Association (OESA).
The banks may be part of a group of lenders who could choose the suppliers to receive loans, De Koker was cited by the news agency as saying.
Suppliers will need loans to start producing parts for General Motors and Chrysler when the automakers resume manufacturing, De Koker was cited as saying in the report one hour cash loan.
“We have very good companies that can’t get financing,” Bloomberg quoted De Koker as saying. “It’s essential to provide support to suppliers in order to ensure that the money already spent on GM and Chrysler doesn’t go to waste.”
The OESA and the Motor & Equipment Manufacturers Association will meet with the auto task force on Wednesday, and U.S. House and Senate members later in the week, according to the report.
(Reporting by Ajay Kamalakaran in Bangalore; Editing by Dan Lalor)