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. Auto Industry ETF

    An exchange-traded fund (ETF) that invests specifically in the ...
  5. Capital Purchase Program - CPP

    A program sponsored by the U.S. Treasury designed to provide ...
  6. Imperfect Competition

    A type of market that does not operate under the rigid rules ...
Related Articles
  1. Stock Analysis

    Auto Suppliers Pressured

    Automakers' woes have spilled over to the auto suppliers, with the latest developments for Chrysler and GM putting suppliers under more pressure.
  2. Stock Analysis

    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?
  3. Stock Analysis

    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?
  4. Mutual Funds & ETFs

    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.
  5. Technical Indicators

    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.
  6. Stock Analysis

    Auto Parts Could Rev Up Returns

    Can new products and new markets bring returns to a sector long seen as a dog?
  7. Stock Analysis

    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. Stock Analysis

    Automaker Stocks: Are These 2016's Best?

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

    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.
  10. Investing News

    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 >>
Hot Definitions
  1. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  3. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  4. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  5. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  6. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center