Suppliers have asked the U.S. Treasury Department for up to $20.5 billion in federal aid to survive the worst industry downturn in years. Suppliers made their request to the Treasury through the Motor & Equipment Manufacturers Association.
Neil De Koker (pictured above), president of the Original Equipment Suppliers Association, said that suppliers are asking for $10 billion in direct loans. They are asking that the additional $10.5 billion be funneled through the Detroit 3 so that suppliers can be paid in 10 days for parts delivered instead of the traditional 45 day period.
According to Automotive News, De Koker said that hundreds of parts makers will close or file for Chapter 11 if they do not receive immediate aid.
The government has already pledged $25 billion to General Motors and Chrysler and another $25 billion is earmarked for supplier and automaker plant retooling.