Auto Suppliers Get $5 Billion

By Michelle Krebs April 9, 2009

The U.S. Treasury Department will start releasing $5 billion in government funds to auto suppliers next week. The Supplier Support Program will funnel the money through General Motors and Chrysler, which have loans from the government, to their shakiest and most vital suppliers.

Chrysler plans to use $1.5 billion; GM expects to use $2 billion. The remaining $1.5 billion would be available at the request of GM or Chrysler.

Ford has declined to participate as it has with government loans for itself. Instead, Ford is lending money to its suppliers.

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