Insurers pull cover from GM and Ford suppliers

[formercia]

http://www.ft.com/cms/s/0/ff28c908-b1ed-11dd-b97a-0000779fd18c.html


By Kiran Stacey, John Reed and Jonathan Guthrie

Published: November 14 2008 02:00 | Last updated: November 14 2008 02:00

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 covers 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.

Euler Hermes, Atradius and Coface, which control more than 80 per cent of the world's credit insurance market, are refusing to write policies for suppliers trading with GM or Ford on credit.

--snip--

Ooops!

[99th_Monkey]

1. I'm sure AIG --being the good corp. citizens they are-- will step up to the plate

to insure the Auto INdustry, no?

[pinto]

2. That's a bad ripple.

[madrchsod]

3. that`s bullshit..

.the fuckers are trying to destroy the auto industry across the globe..

one of these suppliers they are downgrading supplies parts for japanese,american,and european cars and is one of the best and oldest auto parts suppliers in the world. i used to work for them and now my daughter works for them.

[Fumesucker]

4. The problem is not with the suppliers...

The problem is that the insurance companies don't think GM and Ford are likely to honor the contracts they have by paying once the goods are delivered to them.

[Omaha Steve]

5. Pass the bail out

Bad news indeed.