Insurers Pull Insurance Coverage From GM And Ford Suppliers
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The Financial Times reported that three big European credit insurers have withdrawn credit insurance from the automakers' suppliers. The insurance covered suppliers against the risk of the car companies failing. This action by the insurance companies is a vote of no confidence for troubled automakers General Motors (NYSE: GM) and Ford Motor (NYSE: F).
Euler Hermes, Atradius or Coface control more than 80% of the world’s credit insurance market, are refusing to write policies for suppliers trading with GM or Ford on credit. GM and Ford are two of the biggest groups ever to be blacklisted. The stoppage of insurance will primarily affect the companies’ large operations in Europe, where the insurers do the bulk of their business. US suppliers largely operate without insurance.
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Euler Hermes, Atradius or Coface control more than 80% of the world’s credit insurance market, are refusing to write policies for suppliers trading with GM or Ford on credit. GM and Ford are two of the biggest groups ever to be blacklisted. The stoppage of insurance will primarily affect the companies’ large operations in Europe, where the insurers do the bulk of their business. US suppliers largely operate without insurance.
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