The Treasury Department announced a $5 billion program to help embattled U.S. auto parts makers, the latest attempt to stabilize problems in the nation’s troubled auto sector. Companies such as Visteon, TRW, American Axle, will get the funds from the governments massive Troubled Asset Relief Program, otherwise referred to as “TARP”, piggy bank.
The Original Equipment Suppliers Association, a trade group, for the industry praised the new program. The group had asked for up to $18.5 billion in federal help, but Ann Wilson, the group’s senior vice president for government affairs, said this was an important stopgap.
“The Supplier Support Program will help stabilize a critical component of the American auto industry during the difficult period of restructuring that lies ahead,” said Treasury Secretary Tim Geithner in a statement. He said it was crucial to support an industry that employs 500,000 U.S. workers at a time of widespread job losses.
Editor’s Note: So if the logic is that TARP funds will be given out to companies affected by the poor decisions of US automakers, will automotive publications soon receive checks as well? There aren’t enough fingers to plug the holes appearing in this dam, it is time to let the thing break, accept the casualties, and then rebuild it stronger from the ground up.
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