Auto Supplier Support Program (Auto SSP)

AAA

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.

INVESTOPEDIA EXPLAINS '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. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  2. Bankruptcy Risk

    The possibility that a company will be unable to meet its debt ...
  3. Restructuring

    A significant modification made to the debt, operations or structure ...
  4. Bailout

    A situation in which a business, individual or government offers ...
  5. Fast-Moving Consumer Goods (FMCG) ...

    These are consumer goods products that sell quickly at relatively ...
  6. Virtual Good

    A good or product traded in the non-physical realm, typically ...
Related Articles
  1. Insurance

    Top 6 U.S. Government Financial Bailouts

    U.S. bailouts date all the way back to 1792. Learn how the biggest ones affected the economy.
  2. Bonds & Fixed Income

    An Overview Of Corporate Bankruptcy

    If a company files for bankruptcy, stockholders have the most to lose. Find out why.
  3. Bonds & Fixed Income

    Chrysler And The 1979 Bailout

    This American icon almost went under, but the U.S. government refused to let it fail.
  4. Options & Futures

    Analyzing Auto Stocks

    Find out what to consider before taking a ride with stocks from this industry.
  5. Investing Basics

    What are some current examples of oligopolies?

    Learn what oligopolies are and examples of markets where they are prevalent.
  6. Chart Advisor

    'Tis The Season For Food And Beverage Stocks

    The holidays tend to be a gift to investors in defensive consumer stocks. Here's a food and beverage sector ETF (and its top holdings) to consider
  7. Insurance

    Who are the best-rated auto insurance companies in the US?

    Learn which U.S. auto insurance companies have the best consumer ratings and who is eligible to purchase auto insurance from these companies.
  8. Investing Basics

    Who are Tesla's (TSLA) main competitors?

    Learn about Tesla Motors' competitors, some of which are over a century old and others that are much younger. Find out about Tesla's plans for the future.
  9. Savings

    How does a cost of living adjustment (COLA) affect my salary?

    Learn how employers add cost of living adjustments to workers' salaries to offset the effects of inflation or to aid in a lateral move.
  10. Investing Basics

    What are some examples of companies that have high capital expenditures (CAPEX)?

    Learn about companies and industries that have high capital expenditures. Explore the comparisons of five companies using key CAPEX ratios.

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center