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WORLD> America
Auto suppliers request $20.5 billion in US aid
(Agencies)
Updated: 2009-02-05 21:14

DETROIT -- US auto parts suppliers are asking for up to $20.5 billion in federal aid to survive the worst industry downturn in decades, the Automotive News reported on Wednesday.

New 2009 Ford F-150 trucks go through the assembly line at the Dearborn Truck Plant, Michigan in 2008. US auto parts suppliers are asking for up to $20.5 billion in federal aid to survive the worst industry downturn in decades, the Automotive News reported on Wednesday. [Agencies]

Suppliers are asking for $10 billion in direct loans from the US Treasury Department, the magazine said, citing Neil De Koker, president of the Original Equipment Suppliers Association.

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The suppliers made the request on February 1 through the Motor & Equipment Manufacturers Association, according to the report.

The Original Equipment Suppliers Association did not immediately return a call for comment, and a spokeswoman for the Motor & Equipment Manufacturers Association was not immediately available for comment.

Automotive News reported that the suppliers had asked for another $10.5 billion that would flow through the Detroit automakers so that suppliers could be paid in 10 days for delivered parts instead of the traditional 45 days.

Production cuts from all three US automakers and steep declines in sales have are pressuring parts suppliers. Analysts have said they expect many small auto parts suppliers to fail.

The federal government already has pledged $17.4 billion to automakers General Motors Corp(GM.N) and Chrysler LLC (CBS.UL).

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