Supply Slide Economics
Automotive parts suppliers can now take their turn at the bailout trough. The Treasury Department has opened the spigot to the tune of $5 billion. Companies rejoiced. The backdrop, however, is much darker; more like a game of musical chairs with the lights turned off. A week before the parts-maker bailout was announced, an analyst with Grant Thornton warned that 500 auto suppliers were at serious risk of failing, and with them much of the supply chain.