Critical Supplier Goes Belly Up Blaming Unprofitable Contracts - GM Now Facing Production Shutdowns

General Motors Co. says a contract dispute and bankruptcy filing by a key supplier could force it to close all North American assembly plants, causing millions of dollars in losses per day.

The Detroit automaker relies solely on a small private business, Clark-Cutler-McDermott Co., for 175 acoustic insulation and interior trim parts. The carmaker said parts from the supplier are used in nearly every vehicle it produces in North America.

Read Article

MDarringer - 7/13/2016 3:59:46 PM

0 Boost

GM just needs to buy the company and be done.

MrEE - 7/13/2016 7:20:01 PM

0 Boost

GM still a house of cards.

PUGPROUD - 7/13/2016 7:35:15 PM

0 Boost

Penny wise pound foolish GM.

HenryN - 7/14/2016 1:07:39 AM

+2 Boost

Excerpt from the article: "The supplier stopped producing parts for GM after shifts on Friday and laid off its workforce, according to a source familiar with the company’s production plans. Clark-Cutler-McDermott previously had shut down business operations June 17 and laid off workers until GM was granted a temporary restraining order last month by a U.S. District judge in Detroit, forcing the supplier to temporarily resume production. That order expired Monday."

Only GM with its political clout can compel a bankrupting supplier to keep producing parts for them. And for nearly a month from the last shutdown, GM still has not found a solution. Hats off to the New GM - same as the old one.

MDarringer - 7/14/2016 8:42:11 AM

0 Boost

Agreed. Buying the supplier is the most expedient move. This could have been solved in 10 minutes.