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U.S. Auto Parts Companies Looking for Their Stimulus Money Too
U.S. companies that make and supply auto-parts to major carmakers are pleading for a bailout from Washington, as many are now on the verge of declaring bankruptcy. Auto-parts companies may seek between $10 billion and $12 billion in cash and guarantees from the federal government as soon as this week.
A sharp drop in U.S. car production has waylaid the auto-parts industry and now skittish banks are holding credit back from companies looking for a life preserver. Alarmed by the precarious state of Detroit’s Big Three, many banks have stopped accepting receivables, or income that suppliers book in anticipation of future…
27Jan2009 | Money Morning | 0 comments | Continued
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