Lower tier auto suppliers lobby for federal aid

Metals casting and forgings plants may be shut without governments help
By Tom Stundza -- Purchasing, 5/14/2009 11:32:00 AM

Lower-tier automotive suppliers are saying the $5 billion in federal aid promised to the tier one suppliers won’t find its way down to them and are in Washington this week requesting their own aid package.

The tier two and three auto suppliers say aid from the existing federal program, reported in March by Purchasing.com, is going to top suppliers and hasn't filtered through to them--the firms that make carburetors, tire rubber, hinges, fasteners and metal and plastics components. And with the financial troubles at Chrysler and General Motors continuing, more of these lower-tier suppliers are in jeopardy of closing, which could put additional stress on the U.S. automotive supply chain.