Treasury To Loan Auto Suppliers Up To $5 Billion

  • Playlist
  • Download
  • Embed
    <iframe src="" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

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.


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 NPR. All rights reserved. Visit our website terms of use and permissions pages at 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.



Please keep your community civil. All comments must follow the Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.

NPR thanks our sponsors

Become an NPR sponsor

Support comes from