According to an article in the Star-Telegram, many auto-parts suppliers are close to running out of money and facing bankruptcy as the auto industry is hit hard by slumping sales and the credit crunch.
The article said:
Two trade groups, the Original Equipment Suppliers Association and the Motor & Equipment Manufacturers Association, are talking with the Treasury Department about getting up to $25.5 billion in government aid. The bailout would prevent a shortage of critical parts that could halt production of some key models, they claim.
When will the bail outs end? But that’s not the only question. When will ordinary homeowners facing foreclosure and bankruptcy receive help from the government? The auto industry is bloated and has an over supply of vehicles that struggling Americans simply can’t buy because millions have faced job losses and are now concerned with simply keeping a roof over their head. Furthermore, although these trade groups say they are concerned about “critical parts” for “key models” the truth is that they most likely are not going to get paid millions of dollars if one of the major automakers go bankrupt (a very likely event).
The auto-parts makers see their future and it isn’t too bright, so now they are trying to save themselves from bankruptcy by asking the government for a handout. Some may think that bailing out these companies will save jobs; but remember the financial industry shed thousands of jobs AFTER they received bail out money. Keep your eyes open on this one, because we may see another multi-billion dollar bail out with taxpayer money going into the coffers of corporations.