"money owed them for products will be paid, regardless of what happens to car companies.... while giving the domestic auto companies reliable access to the parts they need"
That's what we used to call MAKE WORK!!!
Related: U.S. Military Literally Throwing Money Away
GM Bailout Will Cost Taxpayers $90 BILLION
This is part of it, folks!
"Auto parts makers to get $5b from US; 1m jobs at stake as car sales slump" by Bloomberg News | March 20, 2009
WASHINGTON - US auto suppliers will get as much as $5 billion in Treasury aid to avoid a collapse that would cripple the domestic industry, including federally funded General Motors Corp. and Chrysler LLC.
Suppliers will get a guarantee that money owed them for products will be paid, regardless of what happens to car companies, the Treasury Department said yesterday. The program will be run through the automakers.
The aid "could go a long way to helping some of those suppliers out there," said Mike Wall, an analyst with CSM Worldwide Inc. in Grand Rapids, Mich. "It could change the story line."
How if the PARTS are NOT NEEDED?
Suppliers, squeezed by production cuts at automakers, asked for $18.5 billion last month and said failure to help could mean the loss of 1 million US jobs.
Lear Corp., the second-largest auto seat maker, said this month its auditors expressed doubt about its ability to keep operating, and American Axle & Manufacturing Holdings Inc. said it may breach loan terms.
"The program will provide supply companies with much needed access to liquidity to assist them in meeting payrolls and covering their expenses, while giving the domestic auto companies reliable access to the parts they need," Treasury Secretary Timothy Geithner said in a statement.
Any US auto company can participate in the aid program, and GM and Chrysler have already agreed to do so, according to Treasury. Ford Motor Co. does not need to take part, the company said....
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So GM gets ANOTHER BAILOUT, huh?
