GM suing supplier to keep Camaro production going

Filed under: Coupes, Sports/GTs, Government/Legal, Plants/Manufacturing, Chevrolet, GM

Every time GM turns a corner it seems to come face to face with another obstacle. The latest setback concerns supplier Cadence, LLC, which provides interior parts for the 2010 Camaro. Cadence declared bankruptcy in August, and is now in liquidation proceedings. To GM's chagrin, joining Cadence in its descent into commercial tar pits are the specialized machines that GM needs to make parts for the Camaro.

If GM can't get the tooling, there are certain to be disruptions at assembly plants and then on down the food chain. The General would then need to pay to have the tooling made again while it looks for another supplier, a cost GM describes as "substantial." GM would like to have a new supplier in place by January 12, 2009 because Camaro production is slated to begin on February 16, with deliveries in mid-March.

So far, it's unclear as to who actually owns the machines in question - Cadence or GM - and Cadence has had nothing to say on the matter. Regardless, if GM doesn't get its way, then it has to spend a chunk of the money it just fought for to recover old ground. The most recent precedent isn't promising: Chrysler tried to get the tooling from bankrupt parts supplier Plastech, and was denied. Thanks for the tip, Jerry!

[Source: The Wall Street Journal]

GM suing supplier to keep Camaro production going originally appeared on Autoblog on Sat, 27 Dec 2008 09:31:00 EST. Please see our terms for use of feeds.

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