Federal aid cuts risk of supply chain breakdown.(NEWS)

Byline: David Barkholz

The $5 billion federal bailout of auto suppliers unveiled this month has minimized the risk that a bankruptcy filing by General Motors or Chrysler LLC would disrupt North American auto production, analysts say.

Late last year, the Detroit 3's CEOs warned that a Chrysler or GM bankruptcy would cause a chain-reaction collapse of their suppliers. Mindful of that threat, the Bush administration gave GM and Chrysler emergency loans worth $17.4 billion.

Now that suppliers can count on federal aid, the White House auto task force can decide whether to make crucial new loans to GM and Chrysler based on their viability and the merits of …