The U.S. Treasury on Thursday came up with an
answer to the increasingly loud cries for financial help coming from the autoparts industry: a $5 billion plan to guarantee payment for the parts they ship to participating automakers and purchase their receivables at a slight discount.
The announcement comes during another week of
bad news for the suppliers, including layoffs at Dana Corp. (NYSE:DAN) and alarms about the ability of Visteon Corp. (OTC:Visteon) to remain a going concern.
One of the voices calling for help is that of Wilbur Ross, who has invested in the sector. Another belongs to United Auto Workers official Bob King. On Wednesday Bloomberg quoted King complaining that Washington is
more willing to give financial help to American International Group Inc.
Treasury led its announcement with a reminder that the auto task force is reviewing viability plans for Chrysler LLC and General Motors Corp. (NYSE:GM), due by the end of the month. It also noted that restructuring is needed, and that its goal is to try and "stabilize" the auto supply base while that restructuring goes forward.-
Kenneth Klee
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