Administration rejects auto supplier aid request

0 Comments | Deseret News (Salt Lake City), Jun 17, 2009

WASHINGTON (AP) -- The Obama administration has turned down a request by auto suppliers for up to $10 billion in additional federal aid to help the parts companies deal with the bankruptcies of General Motors and Chrysler.

The Treasury Department said in a statement Tuesday that an existing $5 billion support program for auto-parts suppliers was playing an important role in stabilizing the nation's auto supply base. "No changes have been made to funding, but will continue to monitor the situation," the department said.

Suppliers have lobbied for $8 billion to $10 billion in loan guarantees to help them raise money to buy raw materials and pay employees as Chrysler and GM resume production.

Supplier trade groups met with members of the Obama administration's auto task force and lawmakers last week.