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. Troubled Asset Relief Program - ...

    A government program created for the establishment and management ...
  4. Big Three

    A reference to the three largest automobile manufacturers in ...
  5. Capital Purchase Program - CPP

    A program sponsored by the U.S. Treasury designed to provide ...
  6. Capital Assistance Program

    An element of the financial stability plan launched by the U.S. ...
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. Investing

    The Industry Handbook: Automobiles

    Similar to the invention of the airplane, the emergence of automobiles has had a profound effect on our everyday lives. The auto manufacturing industry is considered to be highly capital and ...
  4. 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?
  5. 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?
  6. Trading

    Analyzing Auto Stocks

    Find out what to consider before taking a ride with stocks from this industry.
  7. Personal Finance

    Don't Be the Victim of Auto Loan Rip-Offs

    Subprime auto loans – and 60-day delinquencies – are up. These 4 signs of predatory auto loans can tip you off before you're caught in one.
  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

    Industry At A Glance - Auto Parts

    Auto parts companies have a bad reputation, but times change and value is value.
  10. Personal Finance

    Americans Are Borrowing More To Buy Cars - But Should They Be?

    As the economy slowly heals, credit has become easier to obtain and interest rates have gone down. But does that mean it's wise to take on a car loan right now?
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. 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 >>
  3. 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 >>
  4. 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 >>
  5. What is the average price-to-book ratio for companies in the automotive sector?

    Learn about the average price-to-book ratio, or P/B ratio, for companies in the automotive sector and how to determine which ... Read Answer >>
  6. Which stocks in the automotive sector pay the highest dividends?

    Learn more about dividends in the automotive industry and a few auto companies that paid high dividends to investors in 2 ... Read Answer >>
Trading Center