Auto suppliers push for help

RESEARCH TRIANGLE PARK, N.C., March 9 (UPI) -- Auto parts suppliers have followed U.S. automakers to Washington, seeking federal help to survive the prolonged downturn in the automotive industry.

Where one goes, the shadow is sure to follow. In this case, the Motor & Equipment Manufacturers Association has asked the U.S. Treasury to guarantee General Motors Corp., Ford Motor Co., and Chrysler LLC payments to suppliers. They also want a federal "quick pay" policy to ensure funds come in faster than the payments from car companies, which can be as long as 90 days, USA Today reported Monday.

"We are not seeking blanket protection from natural consolidation, but need temporary relief to sustain the very foundation of the domestic auto industry and a critical sector of the nation's economy," MEMA Chief Executive Officer Bob McKenna said.

"I've been in this industry for 25 years, and I think this is as bad as I've seen it. The falloff in demand is one of the biggest things we're working through," said Mark Gardner at Deloitte Consulting.

Ironically, one of the dangers for the parts supply industry will come when production picks up again and parts suppliers are in need of their own supplies, while waiting for automakers to pay their bills, the newspaper said.