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Auto Suppliers Higher On Reports Of More Government Aid (LEA, TRW, AXL)

June 9, 2009 2:23 PM EDT
A number of auto part makers are higher today in part on reports from the Wall Street Journal that the companies plan to ask the Obama administration for another $10 billion in aid, as they work through the bankruptcies of General Motors (OTC: GMGMQ) and Chrysler LLC.

Ann Wilson of the Motor and Equipment Manufacturers Association said supplier trade groups intend to propose several new aid programs totaling between $8 billion and $10 billion.

Last month, suppliers Visteon and Metaldyne filed for bankruptcy and a number of others are teetering.

Lear (NYSE: LEA) and TRW Automotive (NYSE: TRW) are reaching out to creditors to re-work terms of their debt.

The U.S. Treasury already approved $5 billion for the industry earlier this year.

Stocks:
  • Lear (NYSE: LEA) +31%
  • TRW Automotive (NYSE: TRW) +2%
  • American Axle (NYSE: AXL) +24%
  • ArvinMeritor Inc. (NYSE: ARM) +7%
  • Dana Holding Corporation (NYSE: DAN) +16%
  • Tenneco (NYSE: TEN) +12%

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Insiders' Blog, Trader Talk

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Chrysler LLC, The Children's Investment Fund (TCI), Bankruptcy, Barack Obama

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