GM Sues Camaro Supplier, Claims Cadence "Holding Hostage" Interior Equipment Necessary For Launch

Illustration for article titled GM Sues Camaro Supplier, Claims Cadence Holding Hostage Interior Equipment Necessary For Launch

Liquidation of now-bankrupt Camaro parts supplier Cadence could delay 2010 Chevy Camaro production, costing GM millions of dollars and delaying a crucial new model. So GM plans to sue them.


"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," states GM’s lawsuit.


The automaker is suing Cadence for immediate access to parts it needs to produce the new Camaro. GM argues that a delay in delivery could could hamper the launch of the vehicle by causing a ripple-effect of delays, ultimately setting the vehicle’s production schedule back significantly.

GM’s lawsuit claims Cadence is “holding hostage” parts and equipment it for Camaro production.

The automaker is already stretched to the limit, kept alive only by its share of the $17.4 billion auto industry bailout. The Camaro is its headline new product for 2009 and any delay would cost GM millions and cause it publicly to lose face during a critical period.


Cadence, which manufactures airbags, consoles and other parts, was named GM’s supplier of the year in 2006. It filed for Chapter 11 two years later, proving the Carpocalypse is hard on everyone and GM really knows how to pick a winner.


GM hopes to have a new supplier manufacturing the parts it needs by January 12. [via WSJ]

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