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For months Washington has focused on saving Detroit's automakers. But now the auto industry says it could face a bottom-up collapse if the suppliers supporting these automakers don't receive federal aid starting next week.
"We're on the cusp of what could be cataclysmic," said Aaron Bragman, an auto analyst with IHS Global Insight.
What now looks like a house of cards was built with a complicated trade credit system. Automakers pay their suppliers 45 to 60 days after the car parts are delivered. And these suppliers delay payments to their subcontractors for up to a year.
By Kendra Marr
Washington Post Staff Writer
Thursday, February 26, 2009; Page D01
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