Auto suppliers to request $8-$10B loan guarantees as companies struggle with falling revenue

Auto suppliers to seek $8-$10B in loan guarantees

NEW YORK — Struggling automotive parts suppliers plan to ask the U.S. Treasury Department for $8 billion to $10 billion in loan guarantees to help support their operations.

Neil De Koker, president of the Original Equipment Suppliers Association, says his group and the Motor & Equipment Manufacturers Association expect to make the official request to the Treasury’s auto task force Wednesday.

Trade association officials say the guarantees are essential for ailing parts suppliers who are facing revenue shortfalls as auto plants shut down and major customers General Motors Corp. and Chrysler LLC restructure under bankruptcy protection.

Suppliers previously received $5 billion in financing support from the Treasury in April.