Two trade groups, the Original Equipment Suppliers Association and the Motor & Equipment Manufacturers Association, made the request to the Treasury Department. The aid would prevent a shortage of parts for key vehicle models and follow massive loans to U.S. automakers.
General Motors Corp. has received $9.4 billion in federal loans and is expected to receive another $4 billion, while Chrysler LLC has received $4 billion in loans and is hoping to access another $3 billion.
The two companies must submit plans to Treasury next week showing how they will restructure their companies to become viable in the future.
A Treasury spokesman did not immediately comment on the auto suppliers' request.
In their submission, parts suppliers asked for up to $7 billion that would go to General Motors and Chrysler so they can speed up payments to the supplier companies. They also want the government to guarantee up to $10.5 billion in longer-term payments the Detroit Three will owe suppliers and $8 billion in federal loans to parts makers.
Many of the nation's roughly 5,000 auto parts suppliers have been cash-strapped for several years as GM, Chrysler and Ford Motor Co. have reduced production of cars and trucks because of falling sales.
Auto suppliers said in their 57-page submission to Treasury that more than 40 major suppliers filed for Chapter 11 bankruptcy protection and more suppliers could collapse if the government does not act. Parts makers employ about 600,000 people nationwide.
"The dramatic downward spiral that the supplier community witnessed in the last few months necessitates immediate action from the Treasury Department," said Bob McKenna, president and CEO of the Motor & Equipment Manufacturers Association.
"We are not seeking blanket protection from natural consolidation, but need temporary relief to sustain the very foundation of the domestic auto industry and a critical sector of the nation's economy," McKenna said.
