Ford Leads Lobby to Change Bankrutpcy Laws

(April 20th, 2006 under Automobile Industry )
In an effort to lessen the possibility of a shut down or other major catastrophe due to a supplier's chapter 11 case, Ford has asked Congress to amend the bankruptcy code (again). Here is a quote from an article out of Los Angeles Times: U.S. auto makers should be granted a special provision under bankruptcy law that would protect them from production disruptions if key suppliers entered Chapter 11, a Ford Motor Co. executive said Tuesday. Tony Brown, who oversees the purchasing of more than $90 billion in parts and materials for Ford, said the provision would grant auto makers access to proprietary tooling technology if suppliers are in bankruptcy. .... The recent changes to U.S. bankruptcy law "didn't reform things enough in our opinion," Brown said, adding that Ford was lobbying lawmakers for the special provision. .... For its part, Ford last year was forced to take back the unprofitable operations of former subsidiary Visteon Corp. to keep the supplier out of Chapter 11. Mike

This entry was posted on Thursday, April 20th, 2006 at 10:00 am and is filed under Automobile Industry .


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