“Only through continued coordinated action by industry, the financial community and the government will a future potential crisis be prevented,” Dave Andrea, Original Equipment Suppliers Association representative said before the Senate banking subcommittee.
The association's representatives argued that it is impossible at this point for supplier to get funding from banks, for instance. Apart from trying to survive the harsh times, the money will be needed by suppliers for the 2010 forecasted increased production, when parts for an extra 2 million vehicles are expected to be needed.
The automotive supplier industry received this year $5 billion in federal support this year, but was denied an additional $10 billion in the bank loan guarantees, as requested by a trade group.
Two months ago, the industry as a whole has received $3 billion for the now historic Car Allowance Rebate System, concluded with the sale of some 700,000 new vehicles. Although it benefited the suppliers as well, the money did nothing but to create the need for more parts in the future. Parts which suppliers now say have no money to make.
The Obama administration has approved earlier this year $2.4 billion in grants for research on advanced batteries and vehicle components. Even is some of them have gone to several suppliers, the biggest winners of the grants remain the carmakers.
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