U.S. Unveils $5.0 Billion Plan for Auto Suppliers

(CEP News) - In a bid to support auto suppliers and the broader sector in general, the U.S. government has agreed to back payments on shipments of automobiles.

The U.S. government has allotted $5.0 billion for the program, in the first major move made by the Obama administration’s auto task force to stabilize the system.

Participating firms will be able to guarantee payments on shipments of automobiles in exchange for a “modest” fee to take part in the program.

Sources at Reuters suggest the program will take a few weeks to implement.

In the moments following the announcement, shares of GM were up nearly 11% on the day, while Ford shares were 5.26% higher.

By Erik Kevin Franco, efranco@economicnews.ca, edited by Sarah Sussman, ssussman@economicnews.ca

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Posted in Categories: Australia, Auto, Economy, Releases, USA.

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