Insurers pull cover from GM and Ford suppliers
Troubled US carmakers General Motors and Ford Motor 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 car companies’ failing – has previously hastened the demise of a string of European companies, with suppliers to retailers and construction companies finding cover increasingly hard to come by.
The report published from ft.com, goes on to point out that this will impact primarily the European operations where the bulk of debts are insured.
Read the full story at ft.com
Posted: November 14th, 2008 under Manufacturing News, Steel.
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