I agree, if the suppliers go down, so do the OEMs.
The govt is well aware of this, so has guaranteed receivables owed by OEMs to suppliers.
http://www.treas.gov/press/releases/docs/supplier_support_program_3_18.pdf
The program will provide suppliers with access to government-backed protection that money owed to them for the products they ship will be paid no matter what happens to the recipient car company.
Participating suppliers will also be able to sell their receivables into the program at a modest discount. This will provide suppliers with desperately needed funding to operate their businesses and help unlock credit more broadly in the supplier industry.
The program will be run through American auto companies that agree to participate in the program. Suppliers to those companies that agree to maintain qualifying commercial terms will have the opportunity to request this government backed protection. If granted, the supplier will pay a small fee for the right to participate in the program.
The Treasury Department has made available up to $5 billion in financing under this program.
I assume that even with this support, and GM's emergence from BK (hopefully), some suppliers will still go under, due to excessive debt loads and not enough revenue. Stocks of companies like Lear and American Axle are trading at prices that imply imminent BK. Presumably healthier suppliers like JCI and Magna can step in and take over some of the business.