Wednesday, March 18, 2009
An Insider's Look At The Struggling Auto Industry On Paltalk
Will the U.S. auto industry ever recover from its current economic instability?. That's the subject of News Talk Online on Paltalk.com Thursday March 19.
Joining us to talk about what it will take to return General Motors and Chrysler to solvency and its affect on auto suppliers will be Tom Spillane, partner and Automotive Industry Team chair with Foley and Lardner Detroit.
Spillane is a seasoned business counselor. He focuses on various bankruptcy and restructuring process in the automotive industry and has insight on the loan requests now being made by the the suppliers of original equipment to both the U.S. and foreign automakers doing business in the United states. Spillane has a global perspective on the issue.
He helped draft the request from the Original Equipment Suppliers Association for TARP loans so that suppliers can continue funding operations. He argues that the government should support the suppliers because they are responsible for about 70 percent of the content in the automobiles that roll of the line. If key suppliers fail, he says, it won't matter how much money was pumped into GM and Chrysler.
There's no question but that the situation is critical. Suppliers are running out of cash due to the shutdown of the auto industry in December and January. Since then, there have been other sporadic shutdowns and the Big Three have cut the amount of supplies they've been ordering. Payments to the suppliers are running behind, sometimes lagging as much as 50 days behind billings, leaving them with no cash flow to even pay their employees or to purchase the raw materials they need to produce parts.
They can't just knock on the door of their neighborhood bank manager's office and ask for help. Most banks aren't lending money at all. Others are severely restricting loan availability to the suppliers.
To talk to Spillane on News Talk Online on Paltalk.com at 5 PM New York time Thursday March 19 CLICK HERE.
Paltalk is the largest multimedia interactive program on the Internet with more than 4 million unique users.
News Talk Online is also syndicated by CRN Digital Talk Radio to an additional 12 million households.