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Great story Jim! If G.M. wouldn't strong arm every single one of their suppliers paying the lowest possible price for the absolute cheapest product producible.
 

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I don't blame GM for this. The management at Clark-Cutler-McDermott should have known they couldn't sell to GM at those prices and stay in business. Basically they shouldn't have signed the contracts in the first place.
 

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I don't blame GM for this. The management at Clark-Cutler-McDermott should have known they couldn't sell to GM at those prices and stay in business. Basically they shouldn't have signed the contracts in the first place.
There is a clear history of ruthless unethical supplier pricing G.M. stories that have caused irreparable damage to the manufacturing community and G.M. consumers as well. I could understand if the cost savings was passed on to the customer but G.M. products sell at top dollar with limited incentives. 0.0% APR is unsustainable as an industry practice and this G.M. 20% off sale going on now is a great opportunity to jump into a G.M. Car or Truck, that is while they're still available!
 

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Never buying another GM after this one.

Kinda bent now with my whole transmission thing.
 

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I don't blame GM for this. The management at Clark-Cutler-McDermott should have known they couldn't sell to GM at those prices and stay in business. Basically they shouldn't have signed the contracts in the first place.
@obermd , so GM doesn't have to do any due diligence and ensure that their suppliers are able to complete the job at X price per part. Profit is not a bad word and GM should have been sure that they were able to make money while supplying needed parts.
 

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This stuff happens, no need to panic. Probably not the first time this has happened. There will be some plan put in place to make parts, could be disruptions but this is about the time plants usually shut down anyways.
 
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Oh goodie. ....no more Camaro' s
 

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This stuff happens, no need to panic. Probably not the first time this has happened. There will be some plan put in place to make parts, could be disruptions but this is about the time plants usually shut down anyways.
Yes, NMY shutdowns are being done now, but the parts suppliers are up to their earlobes in getting production going to supply the assembly plants for those new models. If GM did not anticipate this supplier's chapter 11 stoppage, they could be hurting for parts. Remember, chapter 11 is just bankruptcy protection. The supplier may continue to operate under the watchful eye of a court appointed manager. The real problem would be if the situation suddenly becomes chapter 7 (a complete shutdown). If this supplier's suppliers stop doing business with them for financial reasons, then the chapter 11 filing goes down the drain. Pictures at 11.
 

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Remember, chapter 11 is just bankruptcy protection. The supplier may continue to operate under the watchful eye of a court appointed manager. The real problem would be if the situation suddenly becomes chapter 7 (a complete shutdown). If this supplier's suppliers stop doing business with them for financial reasons, then the chapter 11 filing goes down the drain. Pictures at 11.
Clark-Cutler-McDermott filed for Chapter 11 bankruptcy last week, and is currently seeking to sell off its remaining assets after “unprofitable contracts with GM that have led it to lose $12 million since 2013.” The report states the rate of loss has accelerated this year to more than $30,000 a day.

Read more: GM North America Plants Could Go Offline | GM Authority

However...
GM also stated in court filings that it would fund the sale of the business to a new entity.


 

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GM won court approval to take control over the production equipment.

So this is just another non-story to distract us from what's really going on.
 
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@obermd , so GM doesn't have to do any due diligence and ensure that their suppliers are able to complete the job at X price per part. Profit is not a bad word and GM should have been sure that they were able to make money while supplying needed parts.
In contracts, the recipient of the product isn't required to ensure the supplier can do the job at the price in the contract. However, the customer does need to ensure they can handle the situation where the customer folds. However, the ultimate responsibility for ensuring corporate success rests on the management of the company providing the service.

How many companies really exist that can provide the parts? The answer is very few. Basically GM's responsibility is to get the parts for as little as possible, but anyone who signs a contract that forces them to loose money on each item sold has failed in their due diligence. It's not just GM that goes for these super low per-item contracts. All large companies do this.
 

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More than likely a result of Old GM's practices with suppliers (which, by the way, is just how it used to work with nearly all the auto companies...and still how it does with some) - GM has really revamped how they work with suppliers, and it certainly shows - suppliers have expressed how much happier they are working with GM.

GM Nets Most Supportive OEM Award | GM Authority

Seems like this won't be a problem so...no need to worry.
 
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Bet the CEO gets rewarded to retire with millions while the company goes bankrupt.

Once you make executive you got it made in the shade no matter what the company does.
 

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Bet the CEO gets rewarded to retire with millions while the company goes bankrupt.

Once you make executive you got it made in the shade no matter what the company does.
I doubt that the executives at VW would agree.
 

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Bet the CEO gets rewarded to retire with millions while the company goes bankrupt.

Once you make executive you got it made in the shade no matter what the company does.
I doubt that the executives at VW would agree.
Germany has a different culture. C-C-M's CEO will probably get off scot-free. Maybe GM will just bring this entire operation in-house and get rid of C-C-M entirely.
 
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