The U.S. Treasury Department on Wednesday launched a 5-billion-dollar support program to help auto suppliers, in the latest effort to help stabilize the country's ailing auto industry.
Treasury said in a statement that suppliers interested in anticipating in the program should contact Chrysler and GM, Xinhua reported.
"The U.S. Treasury Department is pleased that both GM and Chrysler have moved quickly to launch Supplier Support programs," said Treasury spokesperson Jenni Engebretsen. "These efforts, backed by U.S. Treasury resources, will help stabilize the auto supply base and restore credit flows in a critical sector that employs more than 500,000 American workers across the country."
"During this difficult period of restructuring in the auto industry, the Supplier Support program will provide supply companies with access to liquidity and protect good-paying American jobs while giving GM and Chrysler reliable access to the parts they need," he added.
Under the plan, suppliers will be able to sell parts that they have not yet been paid for into the government program at a modest discount.
Auto suppliers have been in a cash crunch as automakers are shutting down plants and reducing costs, struggling to survive.
