DETROIT — Auto suppliers on Friday asked for $18.5 billion in federal aid. The suppliers requested $8 billion in federal loan guarantees so they can borrow from commercial banks, said Neil De Koker, CEO of the Original Equipment Suppliers Association.
The other $10.5 billion is for government guarantees of supplier receivables from the Detroit 3. Those loans would allow suppliers to use their receivables for parts already delivered as loan collateral with traditional lenders, De Koker said. As part of the $10.5 billion, about $7 billion would be earmarked for "quick pay" so suppliers could get paid for parts within 10 days of delivery instead of the traditional 45 days.