Camaro supplier sues GM right back
The Cadence-and-Camaro saga continues. Cadence, which makes interior parts for the Camaro, declared bankruptcy last August. GM sued the supplier to recover the specialized tooling machines it could need in order to continue Camaro production - or will it need to have the machines made again. GM also refrained from paying Cadence $4.9 million that Cadence says it is owed for "parts, labor, and equipment."
Cadence has now countersued The General, not just to get the money, but because that money is an integral part of Cadence's liquidation plans. Without it, Cadence maintains there will be "substantial harm to Cadence's bankruptcy estate." The pre-production Camaros are already in the works, and we have no idea how this development will affect the production version of the car. This battle can't be good for either company, but it's especially bad news for all of the Camaro faithful who are patiently awaiting the return of their king. Thanks for the tip, Scot!
[Source: Reuters]
Reader Comments (Page 1 of 2)
cowboy bob 8:12AM (2/18/2009)
By the time Comaro's come to market Astro the wonder dog will be flying the kids to work.
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hokieman09 8:32AM (2/18/2009)
Why is it so hard for some people to understand how long it take to engineer a car from scratch. In 2006 to was purely concept. All this complaining about how long its talking is just ridiculous. I don't know about yall but I don't get tired of a car by seeing it in pictures.
tcc3 11:01AM (2/18/2009)
Maybe if they hadn't axed the Camaro with no real back up plan, or wasted time with the stupid and doomed SS concept.
You blame us for being impatient, but it sounds to me like its GM who doesn't "understand how long it take to engineer a car from scratch."
skine 12:27PM (2/18/2009)
this isnt a car "built from scratch" ....the platform was developed in australia ...and has been underneath the CTS for how many years now? same as the engines ...the CTS has used the DI v6 it for two years now and the 6.2 in the SS has been in the vette ...so this is not a car built from scratch ....and yes it is taking way too long to come out ...if it ever comes out at all
Cliff 1:30PM (2/18/2009)
skine
12:27PM (2/18/2009)
this isnt a car "built from scratch" ....the platform was developed in australia ...and has been underneath the CTS for how many years now? same as the engines ...the CTS has used the DI v6 it for two years now and the 6.2 in the SS has been in the vette ...so this is not a car built from scratch ....and yes it is taking way too long to come out ...if it ever comes out at all
Please get you facts straight before you go off. Yes the platform was developed in Oz, it is NOT the sigma chassis that underpins the CTS, It is however the chassis that underpins the Commodore/G8 called Zeta. GM hater or not , get it right first.
skine 1:45PM (2/18/2009)
ok well i knew it was the zeta ...i just thought it was also underneath the CTS as well ..i knew it was under the G8 but sorry i was mistaken ...either way ....my point was it was an available platform ...so its not built from scratch ...whats the hold up then?
not a GM hater ..i am a mustang fan ..but i would love to see the camaro come out and compete again ...
jrhmobile 8:15AM (2/18/2009)
Looks like they're discovering the consequences of screwing over a sole-source supplier. Looks like "just in time" will just be missing a bit ...
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Suddhodana 8:33AM (2/18/2009)
Choosing a single or sole sourcing strategy for highly specific and complex system parts is not the problem. Most producers do that. The problem is the lack of GM's competence to choose the right supplier. It is not an easy thing to do and necessitates an enormous amount of choosing competence.
BinaryTerror 8:58AM (2/18/2009)
This is what happens when GM does their normal tricks. They always pick vendors based on LOWEST price, not competency, or company.
jrhmobile 9:04AM (2/18/2009)
All true. I agree with both of you above, but the only reason that GM is paying the price in this instance is because they tried to put it to a sole-source supplier right on top of their launch date.
That's why the supplier will ultimately prevail against GM; the only position more powerful than bargaining from absolute strength, and that is bargaining from no strength at all.
Ligor 8:29AM (2/18/2009)
maybe it's not that bad for GM to remake the interior
this time it can give it the look it needs rather than that $heeeety, ugly, terible interior they plan to put in there now
the Camroa could have been a great muscle car, now it's a muscle car with the worst interior of modern times
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Parkerman 10:57AM (2/18/2009)
I agree... I sat in the new Camaro at the Chicago Auto Show... I cried... Well.. not really, but the interior was horrible. Absolute trash.
MajorGeek 8:38AM (2/18/2009)
2 bankrupt companies suing each other. Welcome to modern day America.
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Todd 8:40AM (2/18/2009)
"The pre-production Camaros are already in the works, and we have no idea how this development will affect the production version of the car."
Won't matter - the Camaro will be canceled by whoever takes control of GM in receivership. Being in bankruptcy removes all the control of product decisions from the board of executives and ends their ego driven pet projects.
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skicat 9:15AM (2/18/2009)
@Suddhodana -
The problem is not the supplier, or GM's competence in choosing one. It is in GM's refusal to pay for work performed under contract.
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Corey W. 9:28AM (2/18/2009)
GM, give them the money owed. Supplier, give them the tooling equipment.
Why is this hard??
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Sea Urchin 9:37AM (2/18/2009)
Well, GM has no money, they spent it all on executive compensation.
JSams4131 9:46AM (2/18/2009)
ditto, and I loved the comment about one bankrupt company suing the other..thats was definately classic modern day America, gotta love the stupidity and lunacy.
do things right, honestly, and with responsibility and we wouldn't have half the problems.....but what it purly comes down to is your want something you pay for, not try to swindle ur way to their interior parts.
Chad 10:22AM (2/18/2009)
As a Mustang owner I have to say, "Tee hee".
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harlanx6 10:25AM (2/18/2009)
More death throes of an iconic industry that has squandered it's inheritance with it's "planned obsolescence" business plans while it's competitors were embracing Deming's 14 points of total quality management. Deming was an American who was rebuffed in the US, but is a hero in Japan.
Ford eventually saw the light.
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