Free My Tooling! GM Learns From Chrysler, Files Suit Against a Supplier

It looks like GM is taking a card from Chrysler's playbook, opting to take court action against a key parts supplier, albeit one in bankruptcy. According to the above-linked Reteurs dispatch, GM "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 … General Motors 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." Perhaps GM's claim is legtimate, but one wonders whether GM's latest actions -- including delaying payment past negotiated terms in some cases -- is having an impact on the ability of suppliers like Cadence to remain in business in the first place.

- Jason Busch

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