GM suing Goodyear: Plants not affected, yet

Way back on Friday, this piece of news came across our virtual desks and landed with an immense "thud." Rather than post it immediately, we wanted to see what, if anything, would transpire over the weekend. Thankfully, for both GM and us something did.

It seems that Goodyear had revised its contract with GM and those changes added a hefty sum to the bottom line of the tire makers invoice. The General felt that the increase was too substantial to just sign on the dotted line and in not doing so, Goodyear threatened to stop production of tires that are fitted onto everything from the GMT900 SUVs, commercial trucks and anything built on the Lambda platform. GM filed a suit against Goodyear, saying that the increase in price was not in line with the increase in raw material costs.

The serious issue on Friday was GM's plant opening in Delta Township, Mich. today, Monday, August 7th, where the GMC Acadia, Saturn Outlook and soon-to-be Buick Enclave CUVs all ride on the, you guessed it, Lambda platform. The General and Goodyear have put their differences on hold for the time being and the tire manufacturer has continued shipping tires to all of GM's plants, including Delta Township.

Although this is a temporary solution to a bigger problem, we reckon that Goodyear and GM will start playing nice soon enough, especially considering how dependent both companies are on each other's products.

[Source: Automotive News]

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