Electrostar/Capitalstar delays
 

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withdrawn by their banks.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-workers.html

Paul S

Electrostar/Capitalstar delays
 

"Paul Scott" wrote in message
...
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withdrawn by their banks.


Very interesting. Does anybody know which suppliers ?

Electrostar/Capitalstar delays
 

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withdrawn by their banks.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.

Electrostar/Capitalstar delays
 

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

Electrostar/Capitalstar delays
 

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

Electrostar/Capitalstar delays
 

In message , at 13:10:58 on
Tue, 20 Jan 2009, Paul Scott remarked:
"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."

Bombardier could shock horror offer to pay the relevant suppliers
cash with order, if it's that much of an issue.
--
Roland Perry

Electrostar/Capitalstar delays
 

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

Electrostar/Capitalstar delays
 

On 20 Jan, 15:14, Roland Perry wrote:
In message , at 13:10:58 on
Tue, 20 Jan 2009, Paul Scott remarked:

"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."

Bombardier could shock horror offer to pay the relevant suppliers
cash with order, if it's that much of an issue.
--
Roland Perry

I don't think they'd risk that - COD maybe but with a history of
suppliers going bust during big production runs (seats and toilets
spring to mind) I can't see Bombardier, or anyone, risking cash up
front.

This is the sort of thing that the vast sumes of money going to the
banks was supposed to stop - if it hasn't then isn't it time to name
and shame the banks concerned?

Tony

Electrostar/Capitalstar delays
 

In message
, at
00:42:20 on Wed, 21 Jan 2009, remarked:
This is the sort of thing that the vast sumes of money going to the
banks was supposed to stop - if it hasn't then isn't it time to name
and shame the banks concerned?

The money is being used to pay back the government, apparently!
--
Roland Perry

Electrostar/Capitalstar delays
 

wrote in message
...
On 20 Jan, 15:14, Roland Perry wrote:
In message , at 13:10:58 on
Tue, 20 Jan 2009, Paul Scott remarked:

"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.

(snip)

Bombardier could shock horror offer to pay the relevant suppliers
cash with order, if it's that much of an issue.
--
Roland Perry

I don't think they'd risk that - COD maybe but with a history of
suppliers going bust during big production runs (seats and toilets
spring to mind) I can't see Bombardier, or anyone, risking cash up
front.

This is the sort of thing that the vast sumes of money going to the
banks was supposed to stop - if it hasn't then isn't it time to name
and shame the banks concerned?

Tony


Escrow accounts against which the supplier could borrow? Bombardier would
pay cash into an account that both sides need to agree that it is released,
Bombardier to agree to release on delivery, with mediation built in in case
of disputes, and the banks could lend as secured borrowings.

Except no-one would take the risk.

Patrick