November 13, 2008

Troubled US Carmakers GM And Ford Have Been Given A Potentially Devastating Vote Of No Confidence By Three Big European Credit Insurers

"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.


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."