With the automakers cutting production, the effect has trickled downto auto part suppliers, which have likewise had to curb productionthemselves. With fewer orders for parts, suppliers are struggling to keep their doors open and cash has quickly dried up.

The auto industry has already received an influx of $17.4 billion to boost the cash flow at GM and Chrysler. However, after significantconsideration, and to the Auto Parts Factory delight of others in the industry such as Oklahoma City GMC dealersthe Treasury decided that other facets of the automotive industry werealso eligible for federal aid. Part of the concern was that autosupplier bankruptcies could also jeopardize automakers that are healthysays BMW dealer Los Angeles since many automakers share many of the same suppliers.

With the aid of both the automakers and the auto parts suppliers, the Toyota AccessoriesStore believe it’s evident that the current administration would notlike to see bankruptcy as an option. In addition, the automotive supplychain just an important to the industry overall.

Auto parts suppliers had recently asked for about $25 billion inloans and other assistance. So far the administration is not willing to go to those lengths. But the administration does believe that the newfunds will help sustain the most important companies within the supplychain, which remains vital at this time says Used Cars Albuquerque.Ultimately, the additional funds to both automakers and their supplierswill ensure that production does not become disrupted and will besaved. Since even the biggest suppliers are dangerously close toinsolvency, Boston Used Cars dealers agree that the funds are a vital lifeline for an industry that has rapidly destabilized.

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