The Treasury news release Thursday, “Treasury Announces Auto Supplier Support Program”
The Motor Equipment Manufacturers Association issued a release praising the announcement, “Parts Suppliers Praise Administration for Acting to Assist Industry“:
WASHINGTON, D.C. – The Motor & Equipment Manufacturers Association praises the Obama Administration for taking quick action to assist motor vehicle parts suppliers, the nation’s largest manufacturing sector. Reacting to the U.S. Department of Treasury announcement of the creation of the Auto Supplier Support Program which will provide up to $5 billion in financing, MEMA President Bob McKenna stated, “This is a tremendous step toward stabilizing the supply base, which will benefit the domestic automotive manufacturing industry.”
According to materials provided by the Treasury Department, the program will:
- Provide eligible and participating suppliers with access to government-backed protection that money owed to them for the products they ship will be paid;
- Allow participating suppliers to able to sell their receivables into the program at a modest discount, providing funding to operate their businesses and help unlock credit more broadly in the supplier industry.
Neil De Koker, president of the Original Equipment Suppliers Association, also praised the Administration’s actions. “This program comes at a very critical time and will help suppliers as they struggle to continue operations,” De Koker stated. “We are very optimistic that this will provide many companies with the relief they need.”
The National Association of Manufacturers also issued a statement from NAM President John Engler:
We greatly appreciate the announcement today by U.S. Treasury Secretary Timothy F. Geithner of the Auto Supplier Support Program that will provide up to $5 billion in financing to auto suppliers, enabling them to continue shipping parts, paying their employees and producing the diverse products essential to the auto industry.
We believe this is a common sense proposal that assures suppliers they will be paid for work already done, and have the confidence to invest in the necessary equipment for restructuring and reengineering the cars of the future.
The economic challenges facing the auto industry in America have a significant ripple effect on suppliers that provide vital auto components for the major auto companies, and without which the auto companies could not operate. This action will help us preserve many important, highly-skilled jobs and lay the groundwork for economic recovery.
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