Now that Big Auto looks poised to do its run down the double black diamond run "Bankruptcy," seems like a great time for some free lift passes to Big Auto Supply, right? After all, where is the money going to come from to keep all those plants full of employees when Big Auto stops buying parts in mass quantities to fill up lots with unused inventories of new cars no one wants?
The Obama administration plans to announce a financing facility that would provide up to $5 billion in assistance to the country's beleaguered auto-parts suppliers, many of which are teetering on the edge of bankruptcy.
The assistance would pump money into dozens of the country's biggest suppliers to help pay for seats, axles and other components shipped to the Big Three auto makers, but not paid for, people familiar with the announcement said.
The administration plans to announce the details of the plan this morning.
Always later with the details. Sheesh.
Lenders have already gotten wise and have closed lines of credit to firms that rely on Ford, GM and Chrysler for major fractions of their revenue. It isn't surprising that the suppliers would turn to the government, the "lender of last resort" as it were, since this is their last resort. This begs the question: Will this administration ever let a dying firm just die?
U.S. to Provide $5 Billion in Aid to Auto-Parts Suppliers [The Wall Street Journal]