U.S. auto suppliers call for new federal aid

DETROIT, Nov 3 - U.S. auto suppliers urged the Bush administration to create a new loan guarantee program for the struggling industry and to accelerate loans under an already approved $25-billion program.

The Motor & Equipment Manufacturers Association released a copy of its letter sent to U.S. President George W. Bush on Monday. It urged the administration to create a new loan program for the auto supply industry under the $700 billion Troubled Asset Relief Program.

"Without improved credit availability for the industry, we risk significant losses to motor vehicle demand, employment, and component and material production capacity," said Bob McKenna, president of the trade group. "Parts suppliers are the nation's largest manufacturing sector and the top manufacturing employer in seven states."

The call for federal assistance was the latest from the embattled U.S. auto industry and came as U.S. auto sales data for October showed the weakest result for automakers in some 25 years.