Financial Times FT.com

US plans $5bn in aid for car suppliers

By Tom Braithwaite in Washington, Bernard Simon in Toronto and John Reed in London

Published: March 19 2009 15:43 | Last updated: March 20 2009 00:29

The US Treasury’s auto taskforce laid out $5bn in federal financing to suppliers on Thursday in a deal that protects the core of the industry but could spell the end for some weak companies.

The loan guarantee package is much smaller than suppliers had requested but was broadly welcomed by the industry and its investors, with shares in large suppliers rising sharply.

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