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GM suing supplier to keep Camaro production going
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]
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Reader Comments (Page 1 of 2)
jv2k 9:46AM (12/27/2008)
Inb4 this is somehow GM's fault for "lack of foresight" or some other bs.
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Sea Urchin 9:56AM (12/27/2008)
I guess you do not want to be the buyer of the first few hundreds of Camaro's....let them do testing on someone else.
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diffrunt 3:02PM (12/27/2008)
Thruout GM history it was never wise to buy first year production. They,re better nowadays & up until today I was happy with my Camaro order.
Avinash machado 9:57AM (12/27/2008)
But where will GM get the cash to pay the lawyers?
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Steve Bennet 12:41PM (12/27/2008)
With the bailout money of course...
Chris MacMillan 11:48AM (12/29/2008)
GM's lawyers are probably on 'staff', as much time as The General spends in court.
2007RC46SP2 10:37AM (12/27/2008)
soooo THATS why they decided to offer a bare chassis.
hahaha
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Ligor 10:38AM (12/27/2008)
i guess this gives GM a chance to bring a better interior for the Camaro (a much needed improvement)
but, if GM has not payed the supplier for the tooling yet, then they should buy it from them. If GM did pay for the tooling (likely not, and i'm assuming it is amortized in the piece cost) then it should be handed over to them,
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Pokey 4:59PM (12/28/2008)
Really? What makes you an expert on interiors? You probably haven't even sat in one.
Let me guess, you "sat in one at a show", or your "cousin is an automotive journalist", or your "brother saw one up close".
How can you come to the conclusion that the Camaro needs an improved interior when you probably haven't seen one up close, or sat in one.
The people who have actually had a chance to sit in, and drive these cars, the journalists, have mostly said the interior was nice, and of good quality.
happy_penguin 10:50AM (12/27/2008)
The fallout has already begun...
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Craig 12:24PM (12/27/2008)
So let me get this straight. GM drives the suppliers costs down to negative margins, then when suppliers go under, GM sues for their products? Just wow...
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Mike!!ekiM 11:30AM (12/27/2008)
The planet gets a break.
The last thing we need is a new run of Gas Guzzlers hitting the roads.
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Sean Morris 12:22PM (12/27/2008)
Let me make the decision on what I buy and what I drive.
If you don't like the "gas guzzlers" don't buy one. Have fun in your driving appliance.
For some people its more than just transportation A to B.
Mike 2:23PM (12/27/2008)
If you aren't a car enthusiast why do you even waste your time reading Autoblog? It must be boring to sift through all of the sports car, racing, and production stories just so you can read that all too important article about squeezing another mpg out of your Prius by eating the cookie after a greenie circle jerk.
Seriously 26MPG is a gas guzzler? I guess all of those V6 Accords and Camrys should be boycotted.
Randy915 2:59PM (12/27/2008)
I didn't even need to scroll to the replies to know that you were gonna get flamed to crisps. Keep that fire suit on buddy, you'll need it.
jcar302 3:19PM (12/27/2008)
There's a prius post on autoblog today also.
It should really excite you, although i have not read it, the title suggests the blueman group is involved.
Do us all a favor and spend your time reading and posting in that article.
Mike!!ekiM 4:09PM (12/27/2008)
It's not just horsepower that makes a fast car. It's power-to-weight ratio. GM doesn't ever seem to look at the "weight" side of the equation. And, no, I don't need 300HP to have fun.
Secondly, what you buy and how much gas you use, determines the demand for gas, and the affordability of gas for all of us. We are all that close to bankruptcy with $140 barrel's of oil.
Third, in the real world, the North Pole has lost 2 Trillion Ton's of ice in the last year. The south pole is also about to lose some important ice sheets. So, we are all connected to What You BUY.
Of course, maybe we could have high performance auto's if we Shut Down Coal, and developed the ability to scrub CO2 from the atmosphere, but, I haven't heard that suggested by anyone yet.
jordan 7:02AM (1/09/2009)
"Secondly, what you buy and how much gas you use, determines the demand for gas, and the affordability of gas for all of us. We are all that close to bankruptcy with $140 barrel's of oil."
Do us a favor (other than not posting here, but you've already skipped that part) and look up the price of a barrel of oil. Last time I checked, it was under $50, and the Saudi's are trying to hold an emergency meeting to RAISE the price.
Mike 9:08PM (12/27/2008)
Well if I were you I would buy a Camaro over a Prius as the carbon footprint of the Prius is worse than my Hummer thanks to those Nickel Batteries and the filthy way they are mined and refined. I am going to do those ice caps a favor and buy a 300hp GM vehicle and save both the environment and the economy!
Danny 2:08PM (12/28/2008)
I don't believe anybody is forcing you buy or drive a gas guzzler. Keep driving your Camry or Accord, it really helps the economy. Dumb Ass