US Government Still Focused on Car Parts Business

As we all know, the United States auto sector is one of the most damaged industries when it comes to the economic chaos, with two giants, General Motors and Chrysler forced to file for bankruptcy. And even if the country's authorities have always been interested in the fate of car manufacturers, be it GM, Chrysler or Ford, the government is also focused on the parts sector, an Obama administration representative said.

This means parts suppliers will also receive support from the government when it comes to their business, as about 15 of them have already file for bankruptcy in the United States.

"With the successful emergence of the new companies, consumers can now feel assured that the companies have the financial wherewithal to meet their warranty commitments on a continuing basis," Ron Bloom, leader of the administration's autos task force.

"Political intervention of this nature could also jeopardize taxpayer returns by making it far more difficult for the companies to access private capital markets. Nonetheless, the task force is mindful of the continuing challenges facing auto suppliers and is continuing to actively monitor the health and state of the supply base during this period," he added.

According to a report by just-auto.com, parts suppliers received $5 billion in government support and the government says there are no plans for the time being to extend the funding packages and provide more money for ailing companies.

But Bloom emphasized that the Obama administration is still worried about the dealership cuts, as US automakers decided to reject contracts of thousands of stores across the country. NADA expressed its disappointment as well but both Chrysler and General Motors will still close the doors of several thousands of dealers.