WASHINGTON — The Obama administration has turned down a request by auto suppliers for up to $10 billion in additional federal aid to help the parts companies deal with the bankruptcies of General Motors Corp. and Chrysler.
The Treasury Department said in a statement Tuesday that an existing $5-billion support program for auto parts suppliers was playing an important role in stabilizing the nation's auto supply base. "No changes have been made to funding, but will continue to monitor the situation," the department said.
Suppliers have lobbied for $8 billion to $10 billion in loan guarantees to help them raise money to buy raw materials and pay employees as Chrysler and GM resume production.
Supplier trade groups met with members of the Obama administration's auto task force and lawmakers last week.
Task force officials told industry leaders they had already provided plenty of support but didn't see the need for further action, said Neil De Koker, chief executive of the Original Equipment Suppliers Assn.
"They basically said, 'You know things are smooth right now; we don't see disruption in the industry; assembly lines aren't being shut down because of part shortages,' " De Koker said. "They left the door open."
Obama's task force created a $5-billion financing support program in April to keep parts flowing for GM and Chrysler Group. It also provided guarantees to finance parts that were already shipped to automakers but had not been paid for.