The U.S. Treasury is expected to announce a federal aid package for cash-strapped auto parts suppliers Thursday, two sources briefed on the program said.

U.S. auto parts suppliers had requested up to $25.5 billion in aid from the Obama administration.

Industry executives and bankers have warned that hundreds of component suppliers have been pushed to the verge of failure by a cash crunch triggered by the slow pace of auto production that started at the end of 2008.

(Reporting by Soyoung Kim and David Bailey; Editing by Lisa Von Ahn)

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