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The U.S. government plans to provide 5 billion U.S. dollars to financially troubled auto suppliers who are linked to the nation's three biggest automakers, a latest effort to help stabilize the auto industry.
The money comes from the Obama administration's Troubled Assets Relief Program, or TARP, officials with knowledge of the plan was quoted as saying Thursday by news reports.
Under the plan, a financing facility would be created by the administration to provide funding for auto parts that large suppliers shipped to the automakers but have not been paid for.
Auto suppliers have been in a cash crunch as automakers are shutting down plants and reducing costs, struggling to survive.
Because of the financial crisis and economic recession, U.S. automakers have been battered by a collapse of auto sales here and abroad.
GM and Chrysler, two of U.S. "Big Three" automakers, have received a combined 17.4 billion dollars of emergency loans from the government to stave off bankruptcy.
They requested for an additional 21.6 billion dollars in government aid last month.
The third automaker, Ford, has said that it has enough cash to survive the downturn without government aid. |
