SEC subpoenas Lear for more details on supplier's relationship with GM
With the Securities
and Exchange Commission a bit curious about some of General Motors' accounting practices as
it relates to the automaker's price concessions negotiated with suppliers, Lear now finds itself on the receiving end of
a subpoena of its financial records. Lear 'fessed up to its newfound role in the investigation last week, but received
the Fed's request back in February.
Records of transactions dating back to 2001 are said to be of interest in the investigation. GM has long been regarded as the most aggressive of the automakers when it comes to putting the screws to suppliers, so it's likely safe to assume that there's a bit of Schadenfreude circulating among its suppliers with word of this case.
[Source: The Detroit News]
Reader Comments (Page 1 of 1)
Mr Carpenter 6:14PM (3/13/2006)
Regarding GM: I think the Japanese have a saying. If you are not a hammer, you are a nail.
GM's no longer a hammer, it's a nail.
Reply