The North American production of General Motors is at serious threat after a key supplier of the automaker filed for Chapter 11 bankruptcy production last week.
Clark-Cutler-McDermott Co. (CCM) supplies GM with insulators for the firm’s dashboards, floors, fenders and pillars while also constructing all the wheelhouse liners used by GM in North America.
As GM has no other supplier for these parts, it is requesting relief from the courts so it can acquire the equipment and inventory of CCM to ensure no grave impact on vehicle production. If it can’t acquire these parts, GM is at risk of losing millions until it finds a suitable replacement supplier for CCM.
Laywers for GM said “GM’s damages that would result from such a shutdown would be in the millions of dollars per plant per day. Further, GM would suffer loss of customer relations and goodwill as a result of its inability to deliver vehicles and replacement parts as ordered by customers, all of which would constitute damage claims against the debtors.”
CCM and GM have been working together for 45 years and as the American marque uses a just-in-time inventory delivery system with CCM, it doesn’t keep a large inventory of parts at its factory.
Via Automotive News
PHOTO GALLERY
