Another Detroit Rescue Plan In the Works

Friday, February 6, 2009 2:59 PM

The Obama administration is talking with automakers and their suppliers about the U.S. Treasury rescue program for the industry but has made no decision to expand aid to the auto industry, an administration official said Friday.

U.S. automotive suppliers said on Thursday they were trying to secure emergency government funding to avoid a wave of bankruptcies and a deeper crisis for cash-strapped automakers.

The suppliers have presented three options to U.S. officials that taken together would add up to some $25 billion in assistance.

"The administration is engaged at the highest levels—including the Treasury secretary and the National Economic Council director—on the issues affecting suppliers, dealers and the industry as a whole,'' the Obama administration official said, referring to Treasury Secretary Timothy Geithner and Lawrence Summers, head of the National Economic Council.

The request from the suppliers follows $17.4 billion in Treasury aid for General Motors and Chrysler, which face a Feb. 17 deadline to show U.S. officials they can be made viable.

The official said the Treasury and White House were "in communication with suppliers and the auto companies, though no decisions have been made for an expansion of the current policy dealing with the auto industry.''

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