Modern Camaro Forums banner

1 - 20 of 25 Posts

·
Supporting Super Moderator
Joined
·
5,668 Posts
Discussion Starter #1
Legal spat could delay GM's new Camaro

http://autos.canada.com/news/story.html?id=c4a51a6a-d981-4b78-8eda-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."
 

·
Registered
Joined
·
3,468 Posts
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
 

·
Banned
Joined
·
7,873 Posts
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.
 

·
Registered
Joined
·
1,032 Posts
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...
 

·
Supporter of common sense
Joined
·
9,152 Posts
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.
 

·
Registered
Joined
·
313 Posts
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....
 

·
Banned
Joined
·
1,136 Posts
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... :runaround:

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... :confused:
 

·
Registered
Joined
·
10,420 Posts
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... :runaround:

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... :confused:
Buy them out..that would require money.



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

·
Registered
Joined
·
10,420 Posts
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....
I would have been a little careful of buying from a company that already went bankrupt once.



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

·
Banned
Joined
·
7,873 Posts
After months of teasing us with pictures, concepts and finally the real thing, all that’s left for the new Chevrolet Camaro is to crank up the assembly line so the car can hit the road next year.

More...


cross your fingers guys...

"GM says that if it doesn’t get the production equipment back by Jan. 12, the start of Camaro production will be delayed."
 

·
Registered
Joined
·
5,298 Posts
as I was told.....

"I would advise the members that we are working on contingencies for all sorts of issues that may or may not ever surface. I would also assure them that we are working hard to deliver an expected high quality Camaro from the start and will not do anything to compromise that."
 
1 - 20 of 25 Posts
Top