According to the President of the Original Equipment Suppliers Association, Neil De Koker, parts suppliers will request $10 billion in federal aid to avoid bankruptcy and possible liquidations. Suppliers this week will ask for the $10 billion to be funneled through the Detroit Big 3 automakers so they can be paid in 10 days for parts delivered instead of the usual 45 days.
De Koker said that the association will as the U.S. Treasury Department to make a guarantee on certain supplier receivables so parts makes can use the money to borrow more assets, reports Automotive News.
The group of 35 supplier executives will be sending a letter to the Treasury and will ask the department to forward it to the new “car czar” when he/she is named. De Koker said that suppliers are facing the worst February and March months because of the vehicle production cuts made in December and January.