WASHINGTON (Reuters) - The U.S. Treasury Department on Thursday pledged to provide up to $5 billion in financing support to auto suppliers to help them survive a massive downturn in car sales.
The Treasury said the program, run through key participating U.S. auto companies, will provide government guarantees to suppliers to ensure they will receive payment for products shipped, no matter what happens to the recipient car manufacturer.
Participating suppliers also will be able to sell receivables into the government program at a modest discount, giving them access to desperately needed liquidity and helping to unlock credit more broadly in the supplier industry, the Treasury said.
(Reporting by David Lawder; Editing by Leslie Adler)
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