US Auto Suppliers To Press For Up To $10 Billion In New Federal Aid

U.S. auto-parts suppliers plan to ask the Obama administration for up to $10 billion in new aid to forestall an industry crisis brought on by the bankruptcies of General Motors Corp. (GMGMQ) and Chrysler LLC.

Supplier trade groups plan to propose several new aid programs totaling between $8 billion and $10 billion, said Ann Wilson, of the Motor and Equipment Manufacturers Association. More details were expected later Tuesday, and a proposal could be formally presented to the Obama administration this week.

"We have an immediate crisis that needs to be addressed," Wilson said.

Suppliers, already hurt by the downturn in auto sales and broader recession, are facing a deeper crisis because of the idling of plants and slowdown in production associated with the bankruptcies of GM and Chrysler.

The Treasury Department created a $5 billion program this year to help the supply base by guaranteeing GM's and Chrysler's payments to suppliers. But supply groups have maintained the aid is far smaller than they need.

-By Josh Mitchell, Dow Jones Newswires; 202-862-6637; [e-mail]