GM sues bankrupt supplier Cadence over parts - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

PJ · 12-26-2008, 12:03 PM

NEW YORK, Dec 26 (Reuters) - General Motors Corp <GM.N> 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, 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.

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. (Reporting by Emily Chasan and Santosh Nadgir in Bangalore; Editing by Tim Dobbyn)

http://www.reuters.com/article/email...26157920081226

dieseldave24v · 12-26-2008, 12:05 PM

Ok so great reading, however, lets not get excited over this. Maybe this is the issue with the ABL we have been hearing about. GM still has plenty of time to get this issue resolved.

Have any of our GM employed members heard anything about this?

MrGazinya · 12-26-2008, 12:09 PM

WTF

Sizzox · 12-26-2008, 12:12 PM

O great now everyone is gonna flip we still have months till production it will get settled.

bobby35ny · 12-26-2008, 12:28 PM

Courts do NOT work fast at all, this is bad news.
=Bobby

D1BADZ · 12-26-2008, 12:56 PM

damn I hope they get there parts

dbotsfordtat · 12-26-2008, 12:56 PM

Quote:

Originally Posted by bobby35ny

Courts do NOT work fast at all, this is bad news.
=Bobby

For the average joe, but I bet GM will get put on the judicial fast track. I'm still worried though, theres only a month and a half before production is suppose to start, I imagine theres a learning curve for this equipment. Wow.:(

FirstLSK · 12-26-2008, 12:57 PM

Quote:

Originally Posted by dieseldave24v

...Maybe this is the issue with the ABL we have been hearing about...

That is exactly what I was thinking when I read it.... "door trim and instrument panels..."

TIME TO ROLL IN THE BLACK SUBURBANS.......

Rodrunner · 12-26-2008, 01:07 PM

Quote:

Originally Posted by FirstLSK

That is exactly what I was thinking when I read it.... "door trim and instrument panels..."

TIME TO ROLL IN THE BLACK SUBURBANS.......

Yep, comandeer that tooling and haul it to Oshaua in the Suburbans!

StuMac · 12-26-2008, 01:27 PM

Quote:

Originally Posted by dieseldave24v

Ok so great reading, however, lets not get excited over this. Maybe this is the issue with the ABL we have been hearing about.

Well it would help explain why we've had on word on it from anyone official, there might be a gag order preventing it.

CamaroScotty · 12-26-2008, 01:36 PM

No news here -

Matrix · 12-26-2008, 01:43 PM

Surely there cant be just one company that offer this service for trims etc. Heck go find another, in this climate companies would be bending over backwards to contract with GM.

*The_Blur* · 12-26-2008, 05:51 PM

Has GM been seeking an alternative supplier since August? I think that's an important question. If they were a doomed company, then GM should have had the foresight to start looking for replacement options. It would surprise me if GM didn't have an alternative relatively soon because it would suggest that GM hasn't been looking.

Rodrunner · 12-26-2008, 06:16 PM

But is a company that produces "door trim, instrument panels and air bag covers," techie enough to produce "an active light pipe system?"

Never2LowChevy · 12-26-2008, 07:34 PM

Quote:

Originally Posted by Rodrunner

But is a company that produces "door trim, instrument panels and air bag covers," techie enough to produce "an active light pipe system?"

Maybe not but what do you think the "active light pipe system" goes on or behind? Maybe the other companies that GM was looking at didnt know how to set up the trim for the lighting and thats why they needed the tooling...

FenwickHockey65 · 12-26-2008, 08:25 PM

Aww crap.

Captain Awesome · 12-26-2008, 08:31 PM

Is this the company making the ABL stuff?

Joe in T.O. · 12-26-2008, 08:36 PM

oh no....

camaropete · 12-26-2008, 08:37 PM

ALERT! ALERT! We have officially found the spaz out issue of the day!

Never2LowChevy · 12-26-2008, 09:13 PM

Quote:

Originally Posted by camaropete

ALERT! ALERT! We have officially found the spaz out issue of the day!

How about we spaz out about people spazing out about spaz out issues??? If we didnt have a "spaz out issue" then what would anybody be posting about? Its an open forum, people think. So since there hasnt been anything new released then does that mean you dont want any new posts??? It gives everybody stuff to think and talk about. Yeah, life sucks, I know...

camaropete · 12-26-2008, 09:41 PM

Quote:

Originally Posted by Never2LowChevy

How about we spaz out about people spazing out about spaz out issues??? If we didnt have a "spaz out issue" then what would anybody be posting about? Its an open forum, people think. So since there hasnt been anything new released then does that mean you dont want any new posts??? It gives everybody stuff to think and talk about. Yeah, life sucks, I know...

2Low, I wasn't going for that at all. I was just alerting everyone to the issue of the day. I love to read these posts and see what people are thinking. I am glad everyone is so passionate about this car.

BryGo · 12-26-2008, 09:55 PM

Quote:

Originally Posted by Matrix

Surely there cant be just one company that offer this service for trims etc. Heck go find another, in this climate companies would be bending over backwards to contract with GM.

Uhh, not neccessarily.

GM was a hair away from BK themselves two weeks ago you know. They are SEVERAL months behind on payment on their current suppliers. Logically speaking, I don't think any suppliers would be "lining up" to partner with GM until they can be "viable" again.

Just my 0.02

BryGo · 12-26-2008, 10:00 PM

Quote:

Originally Posted by Matrix

Surely there cant be just one company that offer this service for trims etc. Heck go find another, in this climate companies would be bending over backwards to contract with GM.

However, to add to your statement, it shouldn't be hard for other suppliers to machine or build pieces, allowing they were to acquire the CADs/dies/molds/tooling. As an EE working for telemetry/PCB I have seen where our company acquired someone elses molds and stamps and were able to produce replacement items within a two week timeframe.

Wm Holden · 12-26-2008, 10:43 PM

GROOOOAAAAAAAAAaaaaaaannnnnnnnnnnnssssssssssssssss ss...............

Never2LowChevy · 12-26-2008, 11:02 PM

Quote:

Originally Posted by camaropete

2Low, I wasn't going for that at all. I was just alerting everyone to the issue of the day. I love to read these posts and see what people are thinking. I am glad everyone is so passionate about this car.

I know, I was just givin ya a hard time before anybody else could.

12-26-2008, 12:03 PM	#1
PJ Drives: '10 RS/SS, '07 S281E Join Date: Oct 2008 Location: Wisconsin Posts: 20	GM sues bankrupt supplier Cadence over parts NEW YORK, Dec 26 (Reuters) - General Motors Corp <GM.N> 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, 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. 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. (Reporting by Emily Chasan and Santosh Nadgir in Bangalore; Editing by Tim Dobbyn) http://www.reuters.com/article/email...26157920081226

12-26-2008, 12:05 PM	#2
dieseldave24v PowerStroke this Ford boy Drives: Like Don Garlits "Big Daddy" Join Date: Sep 2008 Location: Richlands/Camp Lejeune NC Posts: 482	Ok so great reading, however, lets not get excited over this. Maybe this is the issue with the ABL we have been hearing about. GM still has plenty of time to get this issue resolved. Have any of our GM employed members heard anything about this? __________________ Hey big man let me hold a dollar Last edited by dieseldave24v; 12-26-2008 at 12:19 PM.

12-26-2008, 12:09 PM	#3
MrGazinya Drives: Aggressive Join Date: Jul 2008 Location: Southampton, PA. Posts: 1,067	WTF __________________ Black 2SS RS LS3 Inferno Int. Plastidipped 20's {MODS} KOOKS LT: Borla S-Type: Roto-Fab CAI: Hurst ST.: Diabloed by Jannetty Racing: PFADT Stage 2, Trailing arms, Tie Rods:

12-26-2008, 12:56 PM	#6
D1BADZ hmmmmm Drives: 2010 IOM in-n-out 2SS Join Date: Oct 2008 Location: San Jose, Ca Posts: 1,326 View My Garage	doh damn I hope they get there parts

12-26-2008, 01:43 PM	#12
Matrix Drives: '10 Camaro 2SS/RS & Magnum R/T Join Date: Oct 2008 Location: BC, Canada Posts: 1,521	Surely there cant be just one company that offer this service for trims etc. Heck go find another, in this climate companies would be bending over backwards to contract with GM. __________________ SIM Camaro 2010 V8-2SS/RS-A6!!+

12-26-2008, 12:28 PM	#5
bobby35ny Drives: 2010 2SS/RS M6 R6P Join Date: Nov 2008 Location: South East, FL Posts: 1,539	Courts do NOT work fast at all, this is bad news. =Bobby

12-26-2008, 01:36 PM	#11
CamaroScotty Account Suspended Drives: Your new SLP Camaro! Join Date: Jul 2008 Location: Cedarburg, WI Posts: 6,806	No news here -

12-26-2008, 05:51 PM	#13
The_Blur Moderator, USN Drives: 11VR2SSA6 Join Date: Nov 2007 Location: NAS Pensacola Posts: 13,799	Has GM been seeking an alternative supplier since August? I think that's an important question. If they were a doomed company, then GM should have had the foresight to start looking for replacement options. It would surprise me if GM didn't have an alternative relatively soon because it would suggest that GM hasn't been looking. __________________ HOW TO GET INVOICE ON YOUR CAR DEAL Prequel to a Camaro Project Forum Rules warn 132:132 ban

12-26-2008, 06:16 PM	#14
Rodrunner Senior Member Drives: 2010 SS/RS, '06 350Z Join Date: Oct 2008 Location: So. Maryland Posts: 2,333	But is a company that produces "door trim, instrument panels and air bag covers," techie enough to produce "an active light pipe system?" __________________ 2SS/RS - Black/Black - CGM Rally Stripes - Auto - VIN 10171

12-26-2008, 08:25 PM	#16
FenwickHockey65 General Motors Aficionado Drives: 2003 GMC Envoy SLE/2000 Ford Ranger Join Date: Aug 2008 Location: Florida Posts: 30,792 View My Garage	Aww crap. __________________ FenwickHockey65's GM Thread! My Cars: 2003 GMC Envoy SLE, 2000 Ford Ranger XLT (State-issued) Extended Family: 2013 GMC Terrain SLE, 1998 GMC Sonoma SLS Extended Cab

12-26-2008, 08:31 PM	#17
Captain Awesome Account Suspended Drives: 2010 Camaro 2SS/RS Join Date: Apr 2008 Location: New York Posts: 3,747	Is this the company making the ABL stuff?

12-26-2008, 08:36 PM	#18
Joe in T.O. Drives: 1970 GTO Ragtop Join Date: Oct 2008 Location: Toronto Posts: 325	oh no....

12-26-2008, 08:37 PM	#19
camaropete I love crepes Drives: 2010 Camaro SS RS Join Date: Oct 2008 Location: Virginia Posts: 5,313 View My Garage	ALERT! ALERT! We have officially found the spaz out issue of the day! __________________

12-26-2008, 10:43 PM	#24
Wm Holden Yes, that's my real name. Drives: 2005 LS2 600hp GTO Join Date: Jul 2008 Location: Ventura, ca. Posts: 996	GROOOOAAAAAAAAAaaaaaaannnnnnnnnnnnssssssssssssssss ss............... __________________ Magnuson 112HH supercharger at 7.5 psi (Virtual 9.0 liter) 600hp 1 of 2 torrid/red int /A4/05 555r 275/40/R17's Nitto Extreme Drags 1.7 60 ft Car runs high 11's No other mods. I got the first 112HH Magnuson blower ported for a GTO. Now it appears it was also one of the last.... http://www.ribbonprinting.com http://www.personalizedawarenessribbons.com

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