GM Runs After Bankrupt Tooling and Parts Supplier
When a company files for bankruptcy, would there be anything to go after? General Motors, a company that almost found itself filing for bankruptcy itself were it not for the timely auto bailout that the U.S. government had released, has reportedly filed a lawsuit against one of its suppliers, Cadence.
Cadence, which makes door trim, instrument panels and air bag covers, filed for bankruptcy protection in August, but this month abandoned plans to sell itself and is now liquidating, according to court papers.
Now filing legal action is one thing but would it matter if the company has practically closed shop? What would you get from them if they have shut down operations already?
The Chevrolet Camaro car is their product line that is being threatened and without the parts on this line, a likely disruption is expected to ensue. If this were the case it seems like it is negating the initial aid that General Motors got and a big blow is likely to occur from their forecast and business outlook.
“Even one day’s disruption in supply of certain Component Parts could cause a shutdown of GM assembly operations, disrupting not only GM’s business, but the operations of countless suppliers, dealers, customers, and other stakeholders,” GM said in the complaint.
GM said that such a shut down could cost millions of dollars per plant per day and it would need to have a successor supplier in place by January 12 for the launch of the new Chevrolet Camaro.
[tags]new_chevrolet_camaro, chevrolet_camaro, bankruptcy_protection, filing_for_bankruptcy, instrument_panels, assembly_operations, business_outlook, bailout, air_bag, component_parts, cadence, camaro, general_motors, stakeholders, gm, chevrolet[/tags]
