Automakers Get A $5 Billion Aid From Fed

The Federal treasury department announced an aid of $5 billion to aid the auto industry out of troubles. This could help all the (or most of them) companies of auto industry ranging from auto parts suppliers to giant carmakers like GM.

Mainly this aid is going to help the Big Three – General Motors, Chrysler LLC, and Ford Motors Corp, out of their recent troubles due to economic downturn.

The Fed is to provide the huge amount from its TARP (Troubled Assets Relief Program). Automakers GM and Chrysler asked for a $25 billion aid to help them revamp themselves as well as the struggling industry. Till now they received an aid of $17.4 billion; but this big amount only helped the two industries to survive from bankruptcy. Now they are asking for an additional $21.6 billion in aid.

This entire program is to help the Suppliers of auto parts to these giants from getting affected due to payment delays or disrupts.

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