The bad news just continues to pile on...
AutoBlog (via the Financial Times), is reporting that the suppliers of European arms of both GM and Ford have lost their credit insurers.
Euler Hermes, Atradius, and Coface will no longer write policies for suppliers trading with either automaker. These three all-powerful insurance companies control more than 80 percent of the world's credit insurance Without their credit cover, suppliers will be forced to either trade uninsured, cease trading, or ask for payment up front. Apparently the situation at GM and Ford are now too risky for these companies to remain in the game.
heffling says:
06:20 AM, 11/17/08
You know, America has enacted a $700B bailout, with Europe and Japan enacting similar measures to help the credit industry recover and continue loaning. It's supposed to prevent exactly what we are seeing from happening.
This is just pathetic.
flicmod says:
07:11 AM, 11/17/08
Welcome to Keynesian economics, heffling.
ateixeira says:
11:36 AM, 11/18/08
Master Card, VISA, American Express...
I ain't got nothing against the credit cards, but the cash is the best!
estreka says:
09:56 PM, 11/18/08
The only reason I have credit cards is the 5% cash back I get each year.