see this news below. NOBL going back to $20 soon enough.
Today's rise in PPS is just a little step toward great future.
APRIL 8, 2009,
3:41 P.M. ET Aid to Auto Suppliers Begins to Flow
By JEFF BENNETT, MAYA JACKSON RANDALL and SHARON TERLEP
"The U.S. Treasury Department on Wednesday kicked off a program to help ailing auto parts makers, providing $3.5 billion in aid to be funneled to suppliers through General Motors Corp. and Chrysler LLC.
GM will oversee $2 billion under the department's program while Chrysler will oversee $1.5 billion. The money will be used to stabilize payments to suppliers, many of which are in, or on the edge, of bankruptcy.
Previously Reported
U.S. Offers $5 Billion to Car Suppliers
03/20/09The effort adds a new prong to the government's push to support GM and Chrysler. GM itself has been given $13.4 billion in federal bailout loans and Chrysler $4 billion, and the government has promised to provide GM with working capital until June 1 and Chrysler with working capital until May 1.
By those deadlines, the auto makers are supposed to work out cost cuts with the United Auto Workers and reach agreements with banks and other creditors to reduce their heavy debt loads. If they can't do that, the Obama administration's auto task force has said it could force one or both companies to restructure through bankruptcy.
Although the aid for parts makers is limited to GM and Chrysler suppliers, the impact is expected to ripple through the industry since those same companies provide parts to other auto makers operating in the U.S.
The Treasury announced last month it was setting aside a pool of $5 billion to fund the program. GM and Chrysler can ask for more money -- up to the $5 billion amount -- if needed. The money the auto makers received Wednesday was in response to their initial aid requests. Ford Motor Co. declined to take part, stating that it can make supplier payments from its own funds. The auto maker is helping its suppliers on a case-by-case basis, offering everything from loans to a change in payment terms.
The Treasury's supplier aid is designed to prevent collapse among companies suffering from a liquidity crunch as auto manufacturers pare production. Visteon Corp., Lear Cop., American Axle & Manufacturing Holdings Corp. and TRW Automotive Holdings Corp. are struggling. The program is expected to be short term, with users relying on the support for three or four months, according to a person familiar with the plan.
Suppliers are starting to apply to GM and Chrysler, and can opt to insure their accounts receivable or have the auto maker accelerate payments for parts in return for a fee.
"It is a voluntary program for suppliers and from our perspective there appears to be significant interest in the program," said Dan Flores, a GM spokesman. "The focus now is to get the program up and running as quickly as we can."
Chrysler said its program, administered by Citibank, is available to suppliers that are incorporated in the U.S.
One senior industry executive said it remained unclear how much relief the program would generate, citing the 3% fee being levied on federal loans used to accelerate payment. "There is a real cost -- 3% is quite a bit for these companies to pay to participate," said Jim Lentz, president of Toyota Motor Sales USA Inc., on the sidelines of the New York auto show.
About two-thirds of Toyota's parts makers in the U.S. also supply parts to GM, Chrysler and Ford.
Mr. Lentz said 100 of Toyota's 500 top-tier parts suppliers are in some level of distress, and 12 are in severe trouble"
Kels
