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"Troubled US carmakers GM and Ford have been given a potentially devastating vote of no confidence by three big European credit insurers, which have removed cover from their suppliers. The withdrawal of credit insurance – which covered suppliers against the risk of the automakers failing – has previously hastened the demise of a string of European companies.
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The move leaves three possible scenarios: GM and Ford can start paying upfront for goods; they can hope their suppliers will trade uninsured; or they could be unable to buy the parts they need for car production."
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