Suppliers to Automakers May Need Help, Too
We've been hearing the news for month: the U.S. Big Three automakers are in trouble. Suppliers to the automakers are also struggling.
According to a recent article at Forbes.com, even if the government bailouts succeed in heading off failure for Chrysler, GM and even Ford (though it says it doesn't need any bailout money yet), the industry may fail "from the bottom up" if suppliers don't receive help as well.
The author writes:
"With credit markets all but frozen, bankrupt suppliers wouldn't be likely to obtain debtor-in-possession financing to stay in business during bankruptcy reorganization. Instead, many would be forced to liquidate. That would put the carmakers in a jam, because they can't easily get the missing parts from ...
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