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Published: Friday, 11/14/2008

GM suppliers termed shaky without bailout

DETROIT General Motors Corp. s North American parts-supply chain may be in for heavy losses, bankruptcies, and liquidations if a rescue plan for the automaker fails to ensure payments for scheduled business, according to W. Patrick Dreisig, who heads the automotive practice at law firm Butzel Long in Bloomfield Hills, Mich.

Thousands of suppliers for GM or companies that ship parts to the automaker often use receivables to back credit for operations. Those with the highest exposure, such as Magna International Inc., American Axle & Manufacturing Holdings Inc., and Lear Corp., are most at risk, he said.

Both American Axle and Lear declined to comment, and Magna didn t respond to phone calls seeking comment.



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