Auto Part Industry Gains Attention

With the automakers cutting production, the effect has trickled down to auto part suppliers, which have likewise had to curb production themselves. 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 significant consideration, and to the delight of others in the industry such as Oklahoma City GMC dealers the Treasury decided that other facets of the automotive industry were also eligible for federal aid. Part of the concern was that auto supplier bankruptcies could also jeopardize automakers that are healthy says 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 Accessories Store believe it's evident that the current administration would not like to see bankruptcy as an option. In addition, the automotive supply chain just an important to the industry overall.

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