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.