Detroit-3 Supplier Support Initiative
On April 7, 2009, Tony Clement, Minister of Industry, and Stockwell Day, Minister of International Trade announced that Export Development Canada, acting as agent for the Government of Canada, will provide an additional CAD 700.0 million of Accounts Receivable Insurance (ARI) to any Canadian-based direct supplier to General Motors Corporation, Ford Motor Company and Chrysler LLC and/or their affiliates (the Detroit-3).The following summarizes the ARI coverage parameters against the Detroit-3:
Period of Coverage
Accounts receivables generated from shipments made, services provided or contracts entered into between April 7, 2009 and April 6, 2010, inclusive.
Eligibility
Coverage is available to any Canadian-based supplier to the Detroit-3.
Maximum Insurance Percentage for Suppliers
90%
Currency of Coverage
CAD
Pricing
Premium is equal to 6.0% of the aggregate amount of credit limits established in respect of buyers approved under the policy. Note: ARI coverage for Production Parts Approval Process (PPAP) payment terms will be priced at 1.5%. Premium is to be paid quarterly in advance in equal installment amounts.
Contact EDC
To apply for this coverage, please contact your local EDC office.
Windsor: Tel.:519-974-7674 Fax: 519-974-9753
London: Tel.: 519-963-5400 Fax: 519-963-5407
Mississauga: Tel.: 905-366-0300 Fax: 905-366-0332
Toronto: Tel: 416-640-7600 Fax: 416-862-1267
