Auto suppliers request $20.5 bln in US aid-magazine

[OhioChick]

Source: Reuters

Wed Feb 4, 2009 9:53pm GMT

DETROIT, Feb 4 (Reuters) - U.S. auto parts suppliers are asking for up to $20.5 billion in federal aid to survive the worst industry downturn in decades, the Automotive News reported on Wednesday.

Suppliers are asking for $10 billion in direct loans from the U.S. Treasury Department, the magazine said, citing Neil De Koker, president of the Original Equipment Suppliers Association.

The suppliers made the request on Feb. 1 through the Motor & Equipment Manufacturers Association, according to the report.

The Original Equipment Suppliers Association did not immediately return a call for comment, and a spokeswoman for the Motor & Equipment Manufacturers Association was not immediately available for comment.

Automotive News reported that the suppliers had asked for another $10.5 billion that would flow through the Detroit automakers so that suppliers could be paid in 10 days for delivered parts instead of the traditional 45 days.



Read more: http://uk.reuters.com/article/motoringAutoNews/idUKN0431356320090204