Auto Suppliers (AAP, SAH, AXL, TRW) Preparing To Request More Aid

The FT is reportingthat US car part suppliers are going to request more government aid, including incentives to encourage investment from private equity.

The auto suppliers also want to access the Treasury department’s TALF program and loans provided by the Small Business Administration.

Last month, the Treasury approved as much as $5 billion in government-backed credit insurance to suppliers of General Motors (NYSE: GM) and Chrysler. In turn, the suppliers can raise cash by selling receivables to the program at a discount.

But Neil De Koker, president of the Original Equipment Suppliers Association, said: "There isn’t enough money in the program to take care of all the suppliers. Many, many suppliers are still desperate."

• Advance Auto Parts (NYSE: AAP) is trading up 2.5% in today's trading
  
• Sonic Automotive (NYSE: SAH) up 4.5% to $2.46
  
• American Axle & Manufacturing Holdings (NYSE: AXL) down 2.5% to $1.51
  
• TRW Automotive (NYSE: TRW) up 2.3% to $6.45

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