GM just lost an insurer

I saw this article, not good news at all for the auto maker.  Reminds me of how recently, before Circuit City went kaput, Sony ordered all of it's products en route to their stores to return back. 


Euler Hermes Cancels Insur For GM, Ford Suppliers -Sources

FRANKFURT -(Dow Jones)- Credit insurer Euler Hermes (425403.FR) has canceled insurance protection for suppliers of General Motors Corp. (GM) and Ford Co. (F) , two people familiar with the matter told Dow Jones Newswires Monday.

According the sources, deliveries from the suppliers weren't covered by insurance in the last two weeks, as the risk of the car makers failing to pay them for deliveries is too high.

Today, up to two-thirds of auto parts aren't produced by the car maker itself, but by suppliers, who must take on considerable credits for that.

The cancellation of the insurance protection puts suppliers under additional pressure, making it more difficult for them to obtain loans. The suppliers might start demanding advance payment for their deliveries or set short-term payment deadlines.

General Motors and Ford both reported billions in losses Friday.

Forum Categories: 

not good

Well, maybe in bankruptcy they can nationalize it, turn it into an institution with a mandate on gas powered, alternative cars.

I'm also kind of bummed because I happen to like Chevy Trucks.

I agree with you that sounds like death knells and this is going to rock the US economy worse than any of these banks....

I'm so sick of the financial sector running this country.

CFTA v GM :OBs First Great Sellout of America Worker on Trade

NY Times 11/11/2008 reports that Obama will cave in to allow the Columbia, Korea Free Trade agreements in exchange for an auto bailout. At this time, we seem to have zero presidents at a time.

Mr. Bush indicated at the meeting that he might support some aid and a broader economic stimulus package if Mr. Obama and Congressional Democrats dropped their opposition to a free-trade agreement with Colombia, a measure for which Mr. Bush has long fought, people familiar with the discussion said.

The Bush administration, which has presided over a major intervention in the financial industry, has balked at allowing the automakers to tap into the $700 billion bailout fund, despite warnings last week that General Motors might not survive the year.

Mr. Obama and Congressional Democratic leaders say the bailout law authorizes the administration to extend assistance.

Mr. Obama went into his post-election meeting with Mr. Bush on Monday primed to urge him to support emergency aid to the auto industry, advisers to Mr. Obama said. But Democrats also indicate that neither Mr. Obama nor Congressional leaders are inclined to concede the Colombia pact to Mr. Bush, and may decide to wait until Mr. Obama assumes power on Jan. 20.

Separate from his differences with Mr. Bush, Mr. Obama has signaled to the automakers and the unions that his support for short-term aid now, and long-term assistance once he takes office, is contingent on their willingness to agree to transform their industry to make cleaner, more energy-efficient vehicles.

A week after Mr. Obama’s election, and more than two months before he takes office, the steadily weakening economy and the prospect of many more job losses are testing his effort to remain aloof from the nation’s business on the argument that “we only have one president at a time.”

Burton Leed

cave on Korea, Columbia

without modification in the Korean trade deal on auto/truck tariffs is like "why bother" to save GM because they will then go under due to unfair competition anyway.

They should use the press and demand Bush help GM.

This Congress has no spine, although I believe it was ripped out by corporate lobbyists versus GWB per say.

trade deals not part of GM/auto fix

The White House is denying the New York Times report and says there is no quid pro quo.

Given what Neil Young has done with a '59 Lincoln

A simple switch to small engines & electric drive trains seems to be in order.  80MPG from this specific car model- with this tech you could get 45MPG from a hummer easy.  And it's well proven tech- GE has been using it for railroad locomotives since the 1950s.

Maximum jobs, not maximum profits.