The automotive parts supply sector, laid low by the sharp drop in car production in the US, is to request at least $10bn of federal bail-out funds from the troubled asset relief programme.

Industry representatives met Treasury officials and members of Barack Obama’s presidential team this month to discuss a growing financial squeeze in the sector. They plan to make a formal request for access to Tarp funds soon, according to Neil de Koker, president of the Original Equipment Suppliers Association, which represents companies that supply car and van makers.