Supplier Problems?

[JJ2010]

I'm wondering if there is a parts problem or going to be one in the near future with the possibility of a GM bankruptcy.I know if I was a supplier providing GM parts I would want to make sure I didn't get left holding the bag.My policy would be show me the money and I will show you the parts.I can't help but to be a little concerned when I read the line was down two days last week ,because they didn't have steering pumps.Is this a problem or going to be one in the future?

[super60]

Originally Posted by JJ2010

I'm wondering if there is a parts problem or going to be one in the near future with the possibility of a GM bankruptcy.I know if I was a supplier providing GM parts I would want to make sure I didn't get left holding the bag.My policy would be show me the money and I will show you the parts.I can't help but to be a little concerned when I read the line was down two days last week ,because they didn't have steering pumps.Is this a problem or going to be one in the future?

Please see my reply on Thread " Minor inside info "

[DevilKnightFalcon]

Originally Posted by JJ2010

I'm wondering if there is a parts problem or going to be one in the near future with the possibility of a GM bankruptcy.I know if I was a supplier providing GM parts I would want to make sure I didn't get left holding the bag.My policy would be show me the money and I will show you the parts.I can't help but to be a little concerned when I read the line was down two days last week ,because they didn't have steering pumps.Is this a problem or going to be one in the future?

There are already 14,000+ cars ordered. I am pretty sure they wouldn't be left "holding the bag". Even if GM goes into bankruptcy that does not mean that the cars won't get made or the accessories won't sell.

[dbotsfordtat]

I think I read somewhere the government is giving them a bunch of Money. So if anybody is going to be left "holding the bag", it'll be unrepresented taxpayers per SOP.

[DGthe3]

Originally Posted by JJ2010

I'm wondering if there is a parts problem or going to be one in the near future with the possibility of a GM bankruptcy.I know if I was a supplier providing GM parts I would want to make sure I didn't get left holding the bag.My policy would be show me the money and I will show you the parts.I can't help but to be a little concerned when I read the line was down two days last week ,because they didn't have steering pumps.Is this a problem or going to be one in the future?

This doesn't make much sense. GM doesn't have a lot of cash, so demand money up front. No money, no parts. That causes product delays on a car that is selling in this awful auto market and pushes GM closer to bankruptcy where they are less likely to ever give you money again. Some suppliers are taking this line with Chrysler, but if Chrysler goes under it won't be as bad for them as GM collapsing would.

That said, one of the biggest reasons GM is asking for money is so that they can pay their suppliers every 6 weeks.

[Vash]

It should not be a problem if the car sells. This is a bottom line thing.

It could cause the price to go up out of GM's control of course. They can't eat parts costs and are of course entitled to a reasonable profit, which is damn near impossible to make in this day and age.

[JJ2010]

I hope it doesn't become a problem...What if you owned a company that had a outstanding bill for two million dollars to GM and all you hear is they may have to file bankruptcy???Just a thought my SS is up for build April 20th. I'm not that concerned,but in the future it could become a problem.

[SandiCandi]

While it is true that suppliers and subcontractors are down the line of who gets how much on the dollar (following bondholders, etc.) when a company declares bankrupcy, it depends on the type of bankrupcy and the judge handling the bankrupcy as to how the restructuring and owed monies are handled.

[fastball]

This happened to Chrysler just last week..... they had to halt Challenger production because they actually ran out of parts due to suppliers hold - I had heard some of Chrysler's suppliers were going to demand COD for every single part or no delivery before the govt. steped in in December.