Auto Suppliers Lower As No Additional Govenment Aid Seen (LEA, ARM, AXL)
Shares of auto suppliers are seeing pressure today on reports that the Obama administration has denied the $8-$10 billion in additional aid that industry trade groups were asking for. Lead Obama advisor Ron Bloom told the groups that plenty of support has already been provided and he didn't see a need for further government action.
According to reports from Dow Jones, Dura Automotive Sytems' CEO Tim Leuliette said he expects a flurry of supplier bankruptcies over the next 60 days. Leuliette said, "There is no more money out there and that is the reality."
The trade groups will continue to lobby Congress for help.
Auto Supplier Stocks:
- - American Axle (NYSE: AXL) -10%
- - Lear Corp. (NYSE: LEA) -2.3%
- - ArvinMeritor Inc. (NYSE: ARM) -14%
- - BorgWarner Inc (NYSE: BWA) -1%
- - Dana Holding (NYSE: DAN) -8%%
- - TRW Automotive (NYSE: TRW) -1%
- - Tenneco (NYSE: TEN) -3%
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