GM sues bankrupt supplier Cadence over parts, Parts interruption would delay launch of Camaro

[DainBramaged]

General Motors has filed a lawsuit against a bankrupt auto-parts supplier, saying it is holding necessary equipment "hostage" which could potentially interrupt the launch of its new Chevrolet Camaro car.

In a lawsuit filed on Wednesday in U.S. Bankruptcy Court in Delaware, GM asked the court to allow it access to facilities of the supplier, Cadence Innovation, so it could obtain necessary tooling and parts for its plants.

Cadence, which makes door trim, instrument panels and air bag covers, filed for bankruptcy protection in August, but this month abandoned plans to sell itself and is now liquidating, according to court papers.

GM said it needed immediate access to the tooling, because it does not have enough parts on hand, and its vehicle assembly operations could be interrupted.

"Even one day's disruption in supply of certain component parts could cause a shutdown of GM assembly operations, disrupting not only GM's business, but the operations of countless suppliers, dealers, customers, and other stakeholders," GM said in the complaint.

GM said that such a shut down could cost millions of dollars per plant per day and it would need to have a successor supplier in place by Jan. 12 for the launch of the new Chevrolet Camaro.

GM said it had an accommodation agreement with Cadence that requires the auto-parts supplier to continue to manufacture the parts and provide tooling and equipment.

A Cadence lawyer and spokesman were not immediately available

http://www.autonews.com/apps/pbcs.dll/article?AID=/20081226/ANA02/312267313/1128

[Buzz Clik]

1. No new Camaro? Nineteen year old boys nationwide will be devastated!

[DainBramaged]

2. Chevy has orders for over 30,000 from customers, NO dealer stock orders

until March. Guess that shoots your theory in the leg.


Oh and I see ignored people.

[Hanse]

3. That's true.

It's more like 45 fat balding men having mid-life crises as opposed to 19 year old boys.

[flvegan]

4. That's because 19 year old boys have been priced out of yet another

(could be) magnificent American car.

I think the Camaro, like the Mustang, will probably do well with the 30-something crowd.

[DainBramaged]

5. Nope, yous guys needs to read da truths

http://www.chevrolet.com/camaro/

$22,995.00

http://www.chevrolet.com/camaro/pdf/2010+Camaro+Specifications.pdf

[Hanse]

7. And that's probably more than the average 19 y.o.'s annual income.

What do you think the target demographic for their new camaro really is?

[ReadTomPaine]

11. Just about every car on the market is, that's why young people tend to get used cars...

or bottom rung economy models, which are better for a new driver in any case.

How much cheaper could a car with this build quality and horsepower be? From all reports, the new Camaro has a much better interior and materials than either of its much higher priced competition (Challenger, Mustang) - so much so that Ford has redone the interior of the next Mustang to remain competitive.

To equal the V6 Camaro's performance, you'd need to bump to a V8 in either of those other vehicles. This makes the Camaro cheaper by thousands of dollars for similar performance. Nissan's equivalent 350/370 (which comes with a V6 only, albeit a nice one) is close to 30K for a base model- and those are hard to find on lots. Toyota doesn't even have a car like this. Honda's got the aging S2000 with 60 less horsepower and less than half the torque of the Camaro's base engine. You have to look long and hard to find a car with similar speed for the price, and they tend to be turbocharged four cylinder hot hatches like the Mazdaspeed3 or Chevy's own Cobalt SS - both fine cars but very different rides than a short deck, long hood, rear wheel drive 2 door coupe with unique styling.

The Camaro is a nice car. It should do quite well, and it deserves to.

As for your question - they are getting a piece of the market the cars mentioned above are a part of - and it's a big one. Virtually all the models mentioned above do quite well in sales numbers, esp. the domestics.

[DainBramaged]

13. The V6 LS is targeted at 20 somethings as their first new car

and it will do great, simply because it isn't a "me too" import or Jeep. Now in a few years, if volumes increase, it will become a "me too" but for now, it's hot, at all age levels. V6 LS models are being ordered at a rate of 3 for every 2 SS models, and LT models aren't as popular, since the price makes the SS viable. And oh those 422 HP in the 6-speed model. Being that there is a LOT more available speed parts for the GM 6 liter, you'll see them modded up to 500+ HP in a hurry. And there is nothing like melting the tires on a summer afternoon.

I am looking forward to my first ride in one, and it will be in early Spring.

[Donnachaidh]

16. note -- not a SINGLE message about gas mileage stats

Just a bunch of testosterone loaded *it's got a BIG engine* info.

And they wonder WHY people don't want to bail out the car makers. Yeah, we want to keep building four wheeled wet dreams. :eyes:

[ReadTomPaine]

17. This isn't a discussion about fuel economy.

It's about parts supply issues for the production of a sports car. These vehicles are measured primarily by their dynamic qualities, not their fuel consumption.

In case you are curious, the figures for GM's direct injection V6 and high performance V8 models are better than the majority of their competition. Not that I think this will matter one whit to you.

You may now resume your regularly scheduled misandry.

[jmowreader]

18. $23,000? For THAT?

They are going to sell so many of those. I need to scrape together $23,000, so they can sell one to me.

What a nice car, and inexpensive too!

[Hanse]

6. After all these decades, I figure 19 old boys are used to it.

:crazy:

[ReadTomPaine]

8. The 300 horsepower V6 model starts around 24K - that's not bad at all.

Granted, it's a bit of a stretch for a 19 year old, but it's quite affordable give the horsepower and the competition. Other than its weight, it seems like Chevy did a good job with this car.

[DainBramaged]

10. Comparable to the Mustang, more HP for the money, better gas millage than the GT

for about $10 grand less.


BASE Mustang is $20,530.00 with a 215HP V-6 and crappy suspension.

[ReadTomPaine]

12. Agreed - it's not in the same ballpark.

The base Mustang reminds me of the Lancer's relationship to the EVO. They have little in common other than shared clothes. Even in its higher performance guises, however.. I don't think the Mustang is going hold an edge over the Camaro. The latter has a much better chassis and platform thanks to Zeta, a better set of engine choices and much better ride and handling compromises. Styling wise, it's a split to me. They both look great. My main issue is the weight, but at this price point and given everything else, it's hard to complain.

[Buzz Clik]

19. A Camaro driver. Oops

[K Gardner]

9. LOL !

[orleans]

14. i can't read the article at the link--i wanted to see if gm has paid for these parts

and is gm sure these parts are already made or there at the plant. you can't get blood from a stone.

it just sounds like a bad situation--since the company filed for bankruptcy in august maybe gm should have taken the initiative and found another company for these various parts? you know, made some emergency plans?

but gm do that? they killed their electric cars. based on that alone, we probably shouldn't count on them to plan for the future or think ahead.

[DainBramaged]

15. Subscription only, sorry it is posted in full

It appears that Cadance was deceptive in it's negotiations with GM, because they filed immediately after securing the contract, and had "hoped" to sell the company after securing the contact. It's the TOOLING they need to make the parts for the Camaro, tooling already paid for.