The New York Times, along with several other media outlets, reported on a new program launched by Ford Motor Co. and C2FO to provide faster payment to the automaker’s U.S. supply chain.
The partnership will accelerate payments to cash-strapped suppliers that are struggling to survive production shutdowns caused by the coronavirus pandemic.
This excerpt is from a Thursday, May 28 article in the NYT:
DETROIT — General Motors Co and Ford Motor Co are using fast-payment programs set up with financial lenders to help cash-strapped small suppliers survive production shutdowns caused by the coronavirus pandemic.
Keeping small suppliers afloat financially is critical for the automakers as they try to restart North American factories and generate cash from sales of large pickup trucks and sport utility vehicles.
The programs pay suppliers up front for bills that typically take 40 to 60 days to settle. For many suppliers, checks for the last work done prior to the shutdown of North American auto plants arrived earlier this month, and no new payments would land until July or August.
Read the full New York Times article on how Ford and C2FO are working together here.