Supplier spat may stall launch of Camaro production: - ModernCamaro.com - 5th Generation Camaro Enthusiasts
5th Generation Camaro News & General Discussion News Articles & General Discussion about the 5th Generation Camaro.

Reply
 
LinkBack Thread Tools
post #1 of 25 Old 10-17-2008, 04:33 PM Thread Starter
Supporting Super Moderator
 
brandonppr's Avatar
 
Join Date: Jul 2006
Location: Middle TN
Posts: 5,668
 
Legal spat could delay GM's new Camaro

http://autos.canada.com/news/story.h...a-0b32f2efb5ed

A legal spat between a General Motors Corp. supplier and a toolmaker could threaten the production launch next year of the automaker's Canadian-built Camaro sports car.

Cadence Innovation LLC is suing H. S. Die & Engineering Inc. over tools it needs to manufacture parts for GM's upcoming Camaro. The two-door coupe is a remake of the classic muscle car and one GM is counting on to help rekindle buyer interest in its lineup.

"It's a car they're really pushing to launch and bring back some of the shine to the Chevrolet name brand," said Jim Gillette, director of supplier analysis at CSM Worldwide. "H. S. is probably holding all the cards right now."

H. S. Die is demanding full cash payment before it hands over the tools and, as a result, is breaching its contract, Cadence said in a lawsuit filed on Tuesday with the U. S. Bankruptcy Court in Wilmington, Del.

Cadence counters that it is under no obligation to pay for the tools until 60 days after the car has been fully assembled and GM has approved the parts. It said that won't happen "for many months."

Without the tools, Cadence can't make and supply General Motors with the parts required for the launch of the Camaro, and the car can't be made, Cadence said in its lawsuit. The suit states that H. S. Die's refusal to turn over the tools could delay production of the vehicles by months if Cadence is forced to scramble to find an alternative sub-supplier.

GM is slated to build the Camaro at its plant in Oshawa, Ont. The car will undergo pre-production tests this year, with first deliveries expected next February. A GM spokesman could not be reached yesterday to comment.

Troy, Mich.-based Cadence filed for bankruptcy protection in the United States on Aug. 26, citing "collapsing revenue and material costs increasing at double digit rates" for its decision. Cadence said at the time it did not expect any disruption to the flow of product to its customers and that it intended to fund onging operations from debtor-in-possession financing used to supplement its working capital. It makes instrument panels, consoles and cockpits, among other products.

Grand Rapids, Mich.-based H. S. Die is likely worried about Cadence's ability to pay under the circumstances, Mr. Gillette said. It could ask GM to guarantee payment for the tools.

The Camaro situation adds further trouble for Canada's auto manufacturing industry, already under pressure from a rapid sales slide in the United States. Yesterday, Ford Motor Co. laid off 125 factory workers at its Oakville, Ont., assembly complex after it failed to get enough employees to take buyouts. Ford was targeting "upwards of 500 people" to leave to convert the plant back to two shifts, said company spokesman Kerri Stoakley.

"There will be further retrenchment in Ontario [at facilities of the Detroit-based automakers]," Kam Hon, an analyst at DBRS, said yesterday. "[But] they're not going to withdraw totally."

1998 Camaro A4 7.06 @ 96.5 MPH NA 1.47 best 60ft
2010 Camaro Tube Chassis work in progress
brandonppr is offline  
Sponsored Links
Advertisement
 
post #2 of 25 Old 10-17-2008, 04:43 PM
Veteran Member
 
Jonz5GEN's Avatar
 
Join Date: Jul 2008
Location: Lyndhurst, NJ
Posts: 4,109
 
Doesn't sound like a positive exchange...........

Jonz5GEN is offline  
post #3 of 25 Old 10-17-2008, 05:20 PM
Veteran Member
 
sdoomxz's Avatar
 
Join Date: May 2008
Location: Michigan
Posts: 3,468
 
this is why GM should have stuck to there own Diemakers.....Thats Funny H.S. Die Is directly across From my Shop.....But a Much bigger Company than me.....I dont blame HS wanting Payment up front....im sure they have many delinquent accounts as i do already.

Hopefully someday i too Can supply GM with there tool needs....Drooool lol

'Winning'
sdoomxz is offline  
 
post #4 of 25 Old 10-17-2008, 05:51 PM
Veteran Member
 
POWERFREAK's Avatar
 
Join Date: Feb 2008
Location: NY
Posts: 7,873
  
that effin sucks.

there's been a lot of things that could have delayed (or worse) the production of the 5th gen...lets hope this gets worked out quickly.

2010-2SS/RS/LS3/IBM/RP6: ECS-Paxton Supercharger / American Racing Headers & Exhaust / PFADT Suspension / DSS 9" 4.10 Rear / FOR SALE!

Quote:
Originally Posted by Taglane View Post
Powerfreak is the only one who actually understood anything.
POWERFREAK is offline  
post #5 of 25 Old 12-27-2008, 12:41 AM
 
Join Date: Aug 2006
Posts: 1,032
 
General Motors sues bankrupt auto parts supplier

GM is suing a bankrupt automotive supplier based in Troy for immediate access to specialized parts and equipment, arguing that a delay would hamper the launch of the new Chevrolet Camaro, disrupt GM's assembly operations and cause millions of dollars in damages.

More...
ModernCamaro.com News is offline  
post #6 of 25 Old 12-27-2008, 06:51 AM
Supporter of common sense
 
OverAnxious's Avatar
 
Join Date: Mar 2006
Location: Detroit, Michigan
Posts: 9,152
  
I saw this on the news and see the bot already reported it...

General Motors Corp. is suing a bankrupt automotive supplier based in Troy for immediate access to specialized parts and equipment, arguing that a delay would hamper the launch of the new Chevrolet Camaro, disrupt GM's assembly operations and cause millions of dollars in damages.

In a filing with the U.S. Bankruptcy Court in Delaware, GM accused Cadence Innovation LLC of "holding hostage" the parts and tooling equipment the automaker needs, and said Cadence was breaching the terms of an agreement signed with the automaker in August. The suit was filed Christmas Eve.

Cadence, which GM once hailed as its 2006 supplier of the year, filed for Chapter 11 bankruptcy in August, and began liquidation proceedings earlier this month. The automotive supplier makes door panels, air bag covers, consoles and other parts at plants in Clinton Township, Chesterfield, Fraser and Hillsdale. In addition to GM, it supplies parts to Ford Motor Co. and Chrysler LLC.

GM wants immediate access to the parts and equipment so it can have a new supplier in place to begin making components by Jan. 12 to avoid a major disruption to its assembly operations.

"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," the lawsuit said.

Cadence did not return a call for comment on Friday.

Joe :: Over Anxious 67 Camaro RS/SS L78
5thgenblog.com // Michigan Classics
Chevrolet Camaro in Transformers // My ebaY auctions

Hot Rod Search Google searches for gearheads!
OverAnxious is offline  
post #7 of 25 Old 12-27-2008, 06:52 AM
Supporter of common sense
 
OverAnxious's Avatar
 
Join Date: Mar 2006
Location: Detroit, Michigan
Posts: 9,152
  
Strange how things work out:
http://www.5thgen.org/forum/showthread.php?t=9644

Joe :: Over Anxious 67 Camaro RS/SS L78
5thgenblog.com // Michigan Classics
Chevrolet Camaro in Transformers // My ebaY auctions

Hot Rod Search Google searches for gearheads!
OverAnxious is offline  
post #8 of 25 Old 12-27-2008, 09:01 AM
 
Join Date: May 2006
Posts: 313
 
This is so bad!!

They are talking about getting a new supplier?
I don't see how they will be able to get parts from a new supplier to a high enough quality level in under two months!

Ironic that a supplier named Cadence would threaten the cadence of the Camaro production program

Cadence actually used to be Venture Industries which filed for Chapter 11 in around 2005 and was reborn into Cadence.. The fall and fall of the US auto industry continues....
GoTeamCamaro is offline  
post #9 of 25 Old 12-27-2008, 09:25 AM
Veteran Member
 
Join Date: Jun 2008
Posts: 1,136
 
Quote:
Originally Posted by GoTeamCamaro View Post
This is so bad!!

They are talking about getting a new supplier?
I don't see how they will be able to get parts from a new supplier to a high enough quality level in under two months!
The article says "...The automotive supplier makes door panels, air bag covers, consoles and other parts..." I could live without a high-quality cup holder ("console"), not so sure about the door panels...

Why doesn't GM just buy them out? If they are bankruptcy the price should be pretty reasonable, and considering GM is now flush with $14B in government loans...
DET MSCL is offline  
post #10 of 25 Old 12-27-2008, 03:42 PM
Veteran Member
 
Luwinkle's Avatar
 
Join Date: Jul 2007
Location: Louisville, KY
Posts: 10,420
 
Quote:
Originally Posted by DET MSCL View Post
The article says "...The automotive supplier makes door panels, air bag covers, consoles and other parts..." I could live without a high-quality cup holder ("console"), not so sure about the door panels...

Why doesn't GM just buy them out? If they are bankruptcy the price should be pretty reasonable, and considering GM is now flush with $14B in government loans...
Buy them out..that would require money.



Never pay again for live sex! | Hot girls doing naughty stuff for free! | Chat for free!

Quote:
Originally Posted by Jeremy Clarkson
A turbo, exhaust gasses go into the turbocharger and spin it, with a supercharger, air goes in, witchcraft happens and you go faster.
Best Car Insurance | Auto Protection Today | FREE Trade-In Quote
Luwinkle is offline  
Sponsored Links
Advertisement
 
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the ModernCamaro.com - 5th Generation Camaro Enthusiasts forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome