Chevrolet Camaro Launch Threatened by Supplier's C11

Robert Farago
by Robert Farago

Reuters (and everyone else) reports that GM is suing bankrupt parts maker Cadence Innovation to recover the bits it needs to build/launch the new Chevrolet Camaro. Both more and less specifically, Cadence makes consoles, door panels and “other parts.” GM wants all of it, bad. So they’re suing, asking a Delaware Court for permission to access Cadence’s factory to recover the necessary tooling and parts to craft their Canadian retro-muscle car. “Even one day’s disruption in supply of certain Component Parts could cause a shutdown of GM assembly operations,” The General’s lawsuit proclaims, using German capitalization to emphasize the seriousness of their demands. A refusal to do so would end up “disrupting not only GM’s business, but the operations of countless suppliers, dealers, customers, and other stakeholders.” Countless? That’s a lot, right? And once they’re being both vague and alarmist, GM said the damages from Cadence’s refusal to surrender machines and parts “would be substantial, but difficult, if not impossible to calculate.” GM reckons it needs the parts-making machines by January 12th. Or a plague of locusts will descend upon the earth and boils will fester on muscle car collectors’ butts. But there’s more to this story than first meets the, uh, eye…

GM court papers reveal that it had an “accommodation agreement” with Cadence requiring the auto-parts supplier to continue to manufacture the Camaro parts and provide tooling and equipment for same. So, one wonders what happened to that “working relationship.” Perhaps, perchance, there’s a little problem with GM’s payment schedule? You know, as in money’s too tight too mention? Did Cadence, bankrupt though it may be, demand cash-on-the-nail? Did GM refuse to honor IT’S side of the bargain?

We’ll know more when we hear Cadence’s side of the story. Meanwhile, WHAT WILL GM DO WITHOUT A CAMARO TO SELL? Same thing they’ve been doing since they revealed the concept in 2006: hype the Hell out of it.

Robert Farago
Robert Farago

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  • Lokki Lokki on Dec 30, 2008

    The Camaro is a necessary product for GM right now. It doesn't really matter whether it sells or not (although I think it will sell better than the Challenger but not as well as the Mustang). It's a showroom traffic builder and that's what the Chevy Dealers need. People will come in to look at the Camaro - just to see it. That will give the salesmen a chance to talk to people about what great values on other vehicles are available and how easy it is to get credit,etc. on them.

  • KixStart KixStart on Dec 30, 2008

    our72gto, How did you examine the NEW CAMARO in detail? Lokki, The success of Honda and Toyota should tell you that halo cars are unnecessary. Unless the Camaro would be profitable in its own right, the project should not exist. I don't see how it can be profitable. They killed the old Camaro because of poor sales. There's plenty of competition and it's already looking weak. Mustang sales have been flat or falling for a while and Challenger sales seem, at best, uninspiring. Camaro volumes will be low and, if I understand correctly, there's no platform mates to share the development costs and I'd bet a quarter that the assembly line won't be multi-purpose. Anyway, I think it's ugly.

  • 1995 SC At least you can still get one. There isn't much for Ford folks to be happy about nowadays, but the existence of the Mustang and the fact that the lessons from back in the 90s when Ford tried to kill it and replace it with the then flavor of the day seem to have been learned (the only lessons they seem to remember) are a win not only for Ford folks but for car people in general. One day my Super Coupe will pop its headgaskets (I know it will...I read it on the Internet). I hope I will still be physically up to dropping the supercharged Terminator Cobra motor into it. in all seriousness, The Mustang is a.win for car guys.
  • Lorenzo Heh. The major powers, military or economic, set up these regulators for the smaller countries - the big guys do what they want, and always have. Are the Chinese that unaware?
  • Lorenzo The original 4-Runner, by its very name, promised something different in the future. What happened?
  • Lorenzo At my age, excitement is dangerous. one thing to note: the older models being displayed are more stylish than their current versions, and the old Subaru Forester looks more utilitarian than the current version. I thought the annual model change was dead.
  • Lorenzo Well, it was never an off-roader, much less a military vehicle, so let the people with too much money play make believe.
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