Small auto parts suppliers said today that aid from federal programs hasnt filtered through to them and warned that their ranks will shrink further if they dont get help.
The government should help open the faucet because the only thing trickling down right now are pink slips, Ron Overton, CEO of Overton Industries, a tool and die company in Mooresville, Indiana, told the House Small Business Committee.
The Tier 2 and Tier 3 suppliers said the Obama administrations $5 billion Supplier Support Program had done little to help them because it is aimed at Tier 1 suppliers.
The biggest problem is getting payments directly from Tier 1 suppliers or funneled through them from General Motors and Chrysler LLC, they said.
Small suppliers often have to wait several months for payment and have trouble getting credit to tide them over, they said.
Were continuing to monitor the situation for suppliers closely, said an administration spokeswoman who declined to be named.
For larger suppliers, there has been limited assistance from automakers.
"We have never missed a supplier payment," GM spokesman Dan Flores said. "We pride ourselves on not being late."
He said GM notified Tier 1 suppliers recently that it would move up June 2 payments to May 28.