GM’s solvency doubts cast a shadow on US and other suppliers

By David Barkholz and Ryan Beene, Automotive News

Detroit, Michigan — If, as expected, General Motors Corp.’s auditors question the auto maker’s ability to remain viable, that could set off a chain reaction resulting in banks’ canceling loan agreements with GM’s suppliers, industry and accounting officials said.

A warning from auditors increases the likelihood that suppliers’ auditors will view GM’s payments to suppliers as being at risk, said Neil De Koker, president of the Original Equipment Suppliers Association in suburban Detroit. That may prompt the auditors to…

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