Tuesday, June 2, 2009

Linamar says exposure to GM is limited

Linamar says exposure to GM is limitedLinamar 3-month TSX chart

Canadian auto-parts maker Linamar Corp. said Monday it's confident it will recoup most of the money it is owed by General Motors Corp., which has filed for bankruptcy protection.

Guelph, Ont.-based Linamar reiterated earlier statements that it has limited exposure to GM in both its accounts receivable and its sales volumes.

Linamar estimated that the balance of its receivables owing from GM that are older than 20 days is less than $2.8 million.

Linamar said it has Export Development Canada insurance coverage in place to fully cover the balance of its outstanding receivables.

"We are of course disappointed that GM was unable to successfully negotiate with stakeholders a satisfactory solution to allow them to avoid Chapter 11," Linamar CEO Linda Hasenfratz said in a statement. "However, we feel that we are in a strong position to weather the situation, given steps we have taken over the past months to minimize our exposure."

Linamar employs more than 9,000 people at 37 manufacturing facilities in North America, Europe, and Asia.