The auto parts supply base is about to be challenged as GM and other carmakers cease production for up to nine weeks this summer and emerge with a strategy of decreased production and decreased need for car parts. Parts dealers are waiting to see which of them GM will pick up after the hiatus and after the bankruptcy proceedings. GM received the go-ahead by Obama's Auto Task Force to deal with its accounts receivable on its most critical suppliers.

Last week, car part suppliers Visteon Corp. and Metaldyne Corp. filed for Chapter 11 bankruptcy protection while others are likely to follow. The fact that the new car market has collapsed by 46 percent in the last three years means that more people are holding on to their existing vehicles for years more than previously. This will, to a small degree help local car parts suppliers who will provide replacement parts to those vehicles.

The car parts supply base is about to undergo a similar restructuring compared to that of GM, in order to remain viable. The previous 16 million units per year car sales pattern will probably shrink to between 10 and 12 million, to become the new norm. The Associated Press reports that automaker Ford Motor Company has agreed to protect its long-time supplier, Visteon by agreeing to set up a revolving credit arrangement, tossing them a lifeline in uncertain times.