The controversy over the bailout of Detroit's Big Three--a package whose passage is looking more unlikely all the time, at least in its current form--is mostly focused around the problems facing those large corporations. Not that those problems aren't significant, but the AP has a useful report today showing that small auto suppliers are in about as much trouble as the big boys.
...if the companies at the bottom of the supply chain don't find a way to recapitalize, Fitzgerald warned, numerous bankruptcies and liquidations among the small companies will set off a string of parts shortages that could reach all the way to the vehicle assembly line.
The resulting disruptions could negate any help the government might give General Motors Corp., Ford Motor Co. and Chrysler LLC.
When it comes to government bailouts, the largest, most connected players will always receive the most attention, even if that's at odds with what a realistic appraisal of the situation would yield.