U.S. auto-parts suppliers plan to ask the Obama administration for up to $10 billion in new aid to forestall a crisis triggered by the bankruptcies of General Motors Corp. (GMGMQ) and Chrysler LLC.

Supplier trade groups will meet Wednesday with President Barack Obama's auto task force at the Treasury Department to warn that hundreds of companies could collapse without the aid. They are mainly requesting that the government guarantee between $8 billion and $10 billion in loans industrywide so banks will have the confidence to lend to parts suppliers.

Stabilizing the fragile supply base is critical to ensuring the long-term viability of GM and Chrysler, who are surviving on tens of billions of dollars in taxpayer money, said Neil De Koker, president and chief executive of the Original Equipment Suppliers Association.

"We could end up having all that money go to waste because they won't be able to start up without suppliers," De Koker said. "If there's just one key part missing on a car, you can't build it."

His group along with the Motor and Equipment Manufacturers Association have prepared a 71-page presentation arguing that as many as 500 parts suppliers could be forced to liquidate this year. They cite several independent studies.

A Treasury Department spokeswoman said administration officials "will continue to work with the companies and monitor the auto supply base going forward." She declined to comment further.

The Treasury earlier this year put in place a $5 billion program to guarantee GM and Chrysler payments to suppliers. But supply groups said the program falls far short of what they need.

Suppliers, already hurt by the plunge in auto sales and the broader recession, are facing a deeper crisis because of production slowdown associated with the restructurings of GM and Chrysler.

Visteon Corp. (VSTN) and Metaldyne Corp. filed for bankruptcy protection last month. Lear Corp. (LEA) and TRW Automotive Holdings Corp. (TRW) are attempting to reach new agreements with their creditors by June 30.

Because suppliers receive payments in cycles that span several months, many companies will soon stop receiving payments from Chrysler, which halted vehicle production earlier this year.

Suppliers plan to propose expanding loan programs at the Small Business Administration and the Agriculture Department to help suppliers, De Koker said.

The supplier groups also plan to meet with members of Congress Thursday to press for alternatives, including legislation, if the administration declines to provide further aid.

Suppliers account for more than three-quarters of auto sector employment in the U.S., according to a Chicago Federal Reserve study, with staffing estimated at around 600,000 across the industry.

-By Josh Mitchell, Dow Jones Newswires; 202-862-6637; joshua.mitchell@dowjones.com

(Jeff Bennett in Detroit contributed to this article.)