Bailout Watch 62: Supplier-Side Stimulus

bailout watch 62 supplier side stimulus

Much of our ire at the proposed auto-industry bailout has been reserved for the OEMs, but their supplier co-dependents are pushing just as hard for the pork picnic. Automotive News (sub) reports that Lear and Visteon were among a dozen suppliers who joined the D3 lobbying efforts in DC last week. Bosch spokeswoman Cheryl Kilborn tells AN that some suppliers were lobbying on behalf of their own projects, while others were present to support the efforts of their OEM partners. The main message of supplier lobbyists was, according to Motor and Equipment Manufacturers Association VP Ann Wilson, “we are everywhere.” And since suppliers are responsible for nearly 70 percent of the value of the typical vehicle and more than 40 percent of automotive R&D spending, it only makes sense that they be eligible for bailout money if Congress puts out. And like the manufacturers, suppliers want fewer strings attached to the government loans, arguing that asking for 25 percent increases in efficiency for bailout-funded projects is too burdensome. Having brought that message to some 40 congressional representatives last week, industry lobbyists are hoping that a united front among OEMs and suppliers helps the federal teat pop out with Janet Jackson-like alacrity. Then they can get back to gouging each other as usual.

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  • TexN TexN on Sep 22, 2008

    "Then they can get back to gouging each other as usual." Damnit, Edward! Now I've got to wipe Diet Coke off of my computer screen! Pure poetry!

  • Gardiner Westbound Gardiner Westbound on Sep 22, 2008
    Money for nothin and chicks for free, Now that aint workin thats the way you do it - Dire Straits.

  • Yankinwaoz Yankinwaoz on Sep 22, 2008

    So now supplier, minority owned dealerships, and God knows who else wants a slice of the $25b "loan"! To do what? How is slicing it up a million ways going to help it achieve what it is earmarked for? This is out of control. Who is telling everyone that has anything to do with the automotive industry that they can have free tax-payer money? Isn't it earmarked for for development of power systems that will help us reduce dependence on foreign oil? I'd rather see that money go to Carnegie Mellon University, Cal Tech, and MIT to develop next gen automotive power systems.

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