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 Basics

    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 ...
  2. Professionals

    29 - 35

    Auto Chapter
  3. Professionals

    57 - 63

    Auto Chapter
  4. Professionals

    64

    Auto Chapter
  5. Professionals

    1 - 7

    Auto Chapter
  6. Professionals

    22 - 28

    Auto Chapter
  7. Professionals

    43 - 49

    Auto Chapter
  8. Professionals

    36 - 42

    Auto Chapter
  9. Professionals

    8 - 14

    Auto Chapter
  10. Professionals

    50 - 56

    Auto Chapter
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. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center