Treasury To Loan Auto Suppliers Up To $5 Billion
The Obama administration is trying to rescue another vital American industry. The Treasury announced Thursday that it will lend auto suppliers up to $5 billion, hoping that will get credit flowing to them again. The industry supplies parts to U.S. automakers and employs hundreds of thousands of workers. It recently asked for $25 billion in aid because it's getting fewer orders from strapped automakers, and lenders are refusing to extend credit.
Copyright © 2009 National Public Radio®. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.
STEVE INSKEEP, host:
NPR's business news starts with a bailout for auto parts suppliers.
(Soundbite of music)
INSKEEP: You'll recall that when two of the Big Three automakers - or at least the companies once known as the Big Three - requested federal aid, they argued that it wasn't just their own company's jobs on the line. It was also the jobs of companies that they work with - auto parts suppliers. And now those companies are getting a bailout. They're considered critical to the automakers. They supply everything from seats and axels to other car parts. They employ hundreds of thousands of people. And the industry is on brink. It recently asked the administration for $25 billion in aid. That's because they're getting fewer and fewer orders from the troubled automakers, whose business has been cut nearly in half.
Lenders are refusing to extend credit to auto part suppliers who do business with US automakers, and so today the Treasury announced it will lend auto suppliers up to $5 billion in the hopes that it will get credit flowing again to the industry.
Copyright ©2009 National Public Radio®. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to National Public Radio. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.
NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.
Comments
Discussions for this story are now closed. Please see the Community FAQ for more information.