Auto Supplier Support Program (Auto SSP)

DEFINITION of 'Auto Supplier Support Program (Auto SSP)'

This is a $5 billion program funded by the U.S. Treasury intended to ensure the availability of parts to the U.S. auto industry. Due to the tenuous position of the large U.S. automakers in 2008 and 2009, the Auto Supplier Support Program (Auto SSP) was just one of many intended to help stabilize the financial crisis in the auto industry to give those companies time to restructure their operations. Both General Motors and Chrysler opted into the program.

BREAKING DOWN 'Auto Supplier Support Program (Auto SSP)'

Under the program, the government substituted its own credit to certain qualified suppliers for qualified receivables arising from new auto production by the U.S. automakers. Because the financial demise of the auto makers was deemed imminent, suppliers were reluctant to extend credit to them, thus bringing production to a halt. For a fee, the U.S. government guaranteed payment to qualified suppliers, or would allow such suppliers to sell their qualified receivables for a modest discount.

RELATED TERMS
  1. Auto Insurance

    A policy purchased by vehicle owners to mitigate costs associated ...
  2. Special Finance

    A sector of the auto lending industry for borrowers with a limited ...
  3. Advanced Technology Vehicle Manufacturing ...

    A U.S. Government subsidy created under section 136 of the Energy ...
  4. Troubled Asset Relief Program - ...

    A government program created for the establishment and management ...
  5. Auto Industry ETF

    An exchange-traded fund (ETF) that invests specifically in the ...
  6. Big Three

    A reference to the three largest automobile manufacturers in ...
Related Articles
  1. Investing

    Advance Auto Parts Trades Ex-Dividend Wednesday (AAP)

    Advance Auto will send its dividend payment on July 1 to shareholders of record as of June 17.
  2. Personal Finance

    Auto Loans the Next Subprime: Jamie Dimon (JPM)

    JP Morgan Chase CEO Jamie Dimon issues a prescient warning over stress in the auto loan market to investors in New York.
  3. ETFs & Mutual Funds

    Auto ETFs vs. Stocks: Which is Best? (CARZ,F,GM)

    Low interest rates and declining fuel prices is good news for the auto industry. Is an auto ETF a good idea or are individual auto stocks a better option?
  4. Investing

    Advance Auto Parts to Trade Ex-Dividend (AAP)

    How much patience will investors show given Advance Auto's dividend yield, owing to its rising share price, has now fallen below its closest peers?
  5. ETFs & Mutual Funds

    Top 3 Auto Industry ETFs (NASDAQ: CARZ, NYSE ARCA: XLY)

    Obtain information about some of the most popular exchange-traded funds investors utilize to get exposure to the automotive industry.
  6. Investing

    Key Financial Ratios to Analyze The Automotive Industry

    Learn about the most critically important financial ratios investors and market analysts utilize to evaluate companies in the automotive industry.
  7. Markets

    Chinese Auto Stocks: Hot or Not? (F, TM)

    The Chinese auto market offers a lot of potential, but is it worth placing a bet now?
  8. Personal Finance

    Top 5 Car Insurance Companies in Texas (PGR, ALL)

    Examine the five biggest automobile insurance companies operating in the state of Texas, ranked based on market share in the state.
  9. Markets

    Automaker Stocks: Are These 2016's Best?

    Auto sales have been on fire, but auto stocks have not. What is 2016 likely to hold?
  10. Markets

    O'Reilly Earnings Driven by Strong Auto Sales (ORLY)

    O'Reilly, one of the nation's largest auto parts retailers, seems to have both speed of revenue growth and profit momentum on its side.
RELATED FAQS
  1. What portion of an automaker's revenue tends to come from auto parts?

    Learn more about the auto parts sector, including how it affects automakers and how it fits into the automotive industry ... Read Answer >>
  2. How important are seasonal trends in the automotive sector?

    Learn more about the automotive industry, including the strong seasonal sales trends for the industry and some of the major ... Read Answer >>
  3. What impact will growth in the emerging markets have on automotive sector?

    Learn about the automotive industry in emerging market nations and the prospects for growth in the auto industry in these ... Read Answer >>
  4. What economic indicators are important for investing in the automotive sector?

    Discover the most important economic indicators when investing in the automotive sector: auto sales, unemployment and consumer ... Read Answer >>
  5. What types of companies are in the automotive sector besides auto manufacturers?

    Explore the relationships between automobile manufacturers and the numerous other types of companies that work in the automotive ... Read Answer >>
  6. What debt/equity ratio is average in the automotive sector?

    Find out more about the importance of analyzing the debt-to-equity ratio and the average debt-to-equity ratio of companies ... Read Answer >>
Trading Center