Network Metals LLC

Worry still remains for auto parts suppliers, as the GM bankruptcy filing will expedite the closing or idling of 12 further US plants. The demand picture for the suppliers, who have already been struggling for some time, still looks bleak for the moment. But from our perspective, and at least from what we have hear from a number of our customers, the bankruptcy filing should ease concerns about getting paid by GM as well as other consumers in the auto industry. Many of these suppliers will likely revert back to payment terms, as they know that any order GM places is backed by the US government, and it will free up credit to get things flowing a little more constructively than they have been. Of course, this only takes us so far if true demand does not begin to pick up in the second half of 2009.