Financial Times FT.com

Insurers pull cover from GM and Ford suppliers

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.

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