The German automotive industry trade association, Verband der Automobilindustrie (VDA) is considering setting up a fund to support suppliers in trouble.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
In principle, vehicle manufacturers would pay into the fund, but the details still have to be agreed. There are no plans as yet to approach the German government for additional support, according to local reports.
German press association, dpa, reported that vehicle manufacturers such as Daimler, BMW or Volkswagen could help get suppliers out of a crisis. There are anti-competitive issues to address.
According to the report, there is no agreement on how much each manufacturer would pay, but it would probably be proportional to the size of the company.
Yesterday saw the collapse of steering specialist Tedrive. The bankruptcy of the company that employs 1,500 people in Germany, was widely reported as being the first casualty of the current automotive demand crisis.
