Mizter T wrote:
On 20 Jan, 13:10, "Paul Scott" wrote:
A fairly concise explanation of Bombardier's current situation he

"BRITAIN'S only remaining train builder, Bombardier Transportation,
has been forced to lay off 77 workers at its Derby factory - despite
having a full order book - because some of its suppliers have had
credit facilities withdrawn by their banks.

In one of the strangest examples so far of the perverse effects of
the credit crunch Bombardier, which has had all its production lines
working at full capacity, said banks have put such a squeeze on
credit that supplier firms are finding it impossible to borrow to
pay for extra equipment and employees to meet Bombardier's growing
demand for components."

More at:

http://www.railnews.co.uk/news/general/2009/01/20-bombardier-layoff-w...


Whilst it can be described as strange and perverse I don't really
think it's that unusual, at least not in these most unusual times -
banks basically ain't giving out credit, and have also been
withdrawing pretty bod standard credit facilities that are used for
normal day to day operations. All sorts of firms are suffering in
similar ways.

Not having any idea about small business finance, would Bombardier's
subcontractors get any more joy from Bombardier's bankers? Or is this the
sort of situation where the DfT could step in with some sort of written
guarantees?

Paul

I'm sure part of the reason for the late delivery of these units -
well the 377/5 at least - is that despite press announcement some time
back about SN ordering them (before the TL loan/transfer was clear)
there was quite a gap between ''letter of intent'' and hard order.
That may have pushed the suppliers back - and their subcontractors
can't react after a lean time to suddenly ramp up. If I recall
correctly the hard order was only placed around about mid-summer 2008
when KO0 became clearer.

--
Nick

Paul Scott wrote:
Mizter T wrote:
On 20 Jan, 13:10, "Paul Scott" wrote:
A fairly concise explanation of Bombardier's current situation he

"BRITAIN'S only remaining train builder, Bombardier Transportation,
has been forced to lay off 77 workers at its Derby factory - despite
having a full order book - because some of its suppliers have had
credit facilities withdrawn by their banks.

In one of the strangest examples so far of the perverse effects of
the credit crunch Bombardier, which has had all its production lines
working at full capacity, said banks have put such a squeeze on
credit that supplier firms are finding it impossible to borrow to
pay for extra equipment and employees to meet Bombardier's growing
demand for components."

More at:

http://www.railnews.co.uk/news/general/2009/01/20-bombardier-layoff-w...

Whilst it can be described as strange and perverse I don't really
think it's that unusual, at least not in these most unusual times -
banks basically ain't giving out credit, and have also been
withdrawing pretty bod standard credit facilities that are used for
normal day to day operations. All sorts of firms are suffering in
similar ways.

Not having any idea about small business finance, would Bombardier's
subcontractors get any more joy from Bombardier's bankers? Or is this the
sort of situation where the DfT could step in with some sort of written
guarantees?

Bombardier has bought one of the subcontractors, which I guess solves
the issue after a fashion.

--
Arthur Figgis Surrey, UK