• Jun 16, 2009
According to The Wall Street Journal, President Obama has taken a pass on granting auto parts suppliers' request for $10 billion in aid, leaving the financially-strapped companies to seek succor from Congress instead.

While the president's administration says it will keep a wary eye on the state of the industry, no more federal aid appears to be in the cards. As quoted in the WSJ, Neil De Koker, president and CEO of the Original Equipment Suppliers Association says that he thinks the government won't financially intervene further "unless we see chaos or a disorderly situation arising where have assembly-line shutdown due to lack of ability to get parts or stuff like that, then we would relook at this situation..."

While the industry's highest-profile bankruptcy have undoubtedly been that of General Motors and Chrysler, major suppliers like Karmann, Visteon and Metaldyne have also filed in recent months, and industry watchdogs see the potential for many more red ink stained white flags to be erected before the industry's economy recovers.

[Source: The Wall Street Journal | Image: Saul Loeb/AFP/Getty]



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  • 22 Comments
      • 5 Years Ago
      I get this image in my mind of Obama sitting on a throne like Dom de Luis in History of the World, Part 1 and giving people a thumbs up or a thumbs down.

      I guess then he takes a treasure bath.
      • 5 Years Ago
      Why go through all that red tape and let Obama & cronies control your business if the end result is going to be bankruptcy anyways? The suppliers should consider this move a blessing and look at what happened to GM/Chrysler in recent months. If they need to move into bankruptcy, then go, without selling your soul to Washington.



        • 5 Years Ago
        "Even if they enter bankruptcy on their own accord, bankruptcy precedent and contract law has been destroyed, and there is no longer consistency of rules to count on."

        Yes very true. If you are a corporate bond holder you have lost much of your security in your investments.

        The only secure investment now is a CD because it's FDIC insured. Oh wait, there is no money left in Washington either.

        Never mind. We are doomed.

      • 5 Years Ago
      Why do I even bother to read the comments anymore?
      • 5 Years Ago
      This is certainly not on topic, but President Obama can wear the hell out of a suit!
      • 5 Years Ago
      I'm surprised he said no more bailouts, $10 Billion should be small change for him compared to the $700+ billion so called "stimulus" package he dumped all over the place. I guess he's only interested wasting the taxpayers hard earned money on money pits like GM, Chrysler and the failed financial institutions.
      • 5 Years Ago
      The Obama way seems to be to wait until situations hit catastrophic and then intervene on an unnecessary scale.

      It's called a power grab. Sole reason to spend as much as possible on failing industries so you can tax successful ones (taxed into failure) is in the end the government owns both and puts party-affiliates in positions of power.


      Big government = economic death, but they won't care since they'll be in the apparatchik by then.

      Better to be a dictator of a 3rd world, 2nd-rate America than an average citizen of a successful America. Democratic party strategy in a nutshell.


      No, I'm not anti-law, or any of the founding 'liberal' principles. The Democratic party has no principles right now except shameless self-promotion.

      They are not 'liberal' by definition, because they are skirting the law. The Party itself is acting like organized crime, that's what I don't like about it.

        • 5 Years Ago
        If any of you douchbags had a frakking clue, you might actually be dangerous.
        • 5 Years Ago
        Tim,

        We can see past 2 weeks into the future.


        They are now part of the gov't-owned supply chain.
        • 5 Years Ago
        BoxerFanatic,

        I wish I could shake your hand. You tell the truth more eloquently than I could ever hope to. Too bad we can't meet up and discuss some of this stuff. You seem like a guy who has his head screwed on straight, unlike most of the people I know. Maybe at the ballot box?
        • 5 Years Ago
        Tim,

        instead of calling people names, and lobbing cheap shots, why not back it up with something...

        Exactly how are we incorrect?

        How can the current administration be seen to be doing anything BUT consolidating power in the US government, the executive branch particularly?

        Otherwise, you are a vulgar troll with nothing but insults. Buzz off.
      • 5 Years Ago
      Nah,

      Government doesn't need to, when GM is giving BILLIONS to a private investment firm to bring Delphi back from bankruptcy.

      While GM is on the taxpayer hook.

      Who needs oversight and accountability, when the executive branch can flout it with Czars, and strong-arming formerly free enterprise entities, without legislative process.

        • 5 Years Ago
        LS7,

        You aren't getting it. The executive branch is leaving the legislative branch behind.

        They have moved beyond congressional malpractice for bail outs... the bail outs granted the executive branch, especially the SecTreas, unprecedented power...

        Now they are funnelling and channeling that money via unaccountable executive branch control, without even needing the congress to approve it.

        They have gone from horrific, to EVEN WORSE. Not better. Different corruption != better.
        • 5 Years Ago
        BoxerFanatic:
        So just to double check, you're here bitching that the administration for once didn't engage in the list of activities you don't approve of?

        If you want to make your point, maybe you could do it more like this:
        'Good decision. The last bailout was a dumb idea, it's about time you got the message people have been sending.'
        • 5 Years Ago
        Check your sarcasm meter, man.

        I have been against ALL of the bail outs, and BOTH administrations doing them.

        I am also against the flouting of the system of checks and balances built into the government by the constitution.

        But flouting the constitution seems to be the only thing this government is actually good at doing, and the US-Gov't->GM->Platinum private equity firm->Delphi is flouting the congressional representative process of making policy. It is picking and choosing who gets what money, without congressional liability or oversight, or accountability to the people.

        The Czars in the executive branch, are also unaccountable to the people, via Congress, where the Cabinet members ARE supposed to be.

        My side is not in question. But who's side is the administration on? Certainly not on the side of private enterprise and free market capitalism, or limited federalist government.
        • 5 Years Ago
        Careful Boxer, or you will be accused of listening to Rush Limbaugh, watching Fox News, and wearing a tin foil hat all at the same time for making comments that support how the government is supposed to work and not how the messiah is running the show.
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