Auto suppliers may get full $5 billion in U.S. aid
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Members of the Big Three automakers may be allowed access to the full $5 billion in U.S. aid designated for their r...
Members of the Big Three automakers may be allowed access to the full $5 billion in U.S. aid designated for their relief, even if Ford Motor Co. doesn’t take its allocation of the funds.
According to an April 9 White House press release, the funds originally designated for Ford’s suppliers now will be available to General Motors Corp. and Chrysler LLC suppliers if the auto makers apply and their applications meet federal guidelines. GM says it will make US$2 billion of the funds available to its suppliers and Chrysler is expected to allot US$1.5 billion, putting the rest up for grabs.
The U.S. Treasury Department program offers quicker payment on or a guarantee of payments due for parts shipped after March 19. To participate, suppliers have to apply with the automakers.
According to the terms of the program, the actual amount available through GM and Chrysler will depend on how much each automaker seeks to tap. The companies have to pay a five per cent fee to the U.S. Treasury for the funds. The money is to be disbursed to the approved suppliers by Citibank.