US auto suppliers are seeking as much as $25.5 billion in government aid to avoid a string of bankruptcies in the industry, according to a report.
The Motor & Equipment Manufacturers Association has submitted three aid options to the U.S. Treasury in the wake of the government’s support for General Motors Corp. and Chrysler LLC, Bloomberg reported Friday.
In a statement released yesterday, the president and chief executive of MEMA Bob McKenna said that without “immediate credit availability” the U.S. economy would face an “onslaught” of supplier company bankruptcies.
The costliest of 3 bridge solutions in an 11 page presentation made by MEMA was a $10.5 billion aid program, according to Bloomberg. The document didn't indicate the programs might all be used, but were labeled options in the organization's statement released yesterday.
Mckenna characterized the conversations about credit options with Treasury and elected officials as “constructive,” but as of Thursday said there had been no official request submitted.