General Motors executives are breathing a sigh of relief after the automaker reached a deal with a supplier that threatened to shut down GM’s entire U.S. assembly operation.
The automaker hammered out an agreement with the bankrupt Clark-Cutler-McDermott Company, a supplier of trim and acoustic insulation that GM had been propping up financially since March, the Wall Street Journal reports. (Read More…)
GM is facing off with a key parts supplier in bankruptcy court today, but the drama between it and the Clark-Cutler-McDermott Company started at the same time the automaker handed the company a nice award.
The Massachusetts-based CCM axed its workforce on July 8 and declared chapter 11 bankruptcy, leaving the automaker without the insulation and trim parts needed to build most of its vehicles. A continued disruption in the supply chain would be a massive blow to the automaker, forcing it to shut down assembly plants throughout North America.
Court documents show that at the same time GM was handing CCM a “Supplier of the Year” award at Detroit’s Cobo Center on March 10, CCM had already told GM it had defaulted on a loan and was looking for a handout in order to stay afloat. (Read More…)
A Massachusetts-based parts supplier you’ve probably never heard of could force General Motors’ entire North American operation to grind to a halt.
Clark-Cutler-McDermott Co. stopped making acoustic insulation and trim pieces for GM vehicles on Friday after declaring Chapter 11 bankruptcy, a situation it blames on money-losing contracts signed with the automaker, a source told The Detroit News. (Read More…)
“Would it kill you to buy American?” mutters Walt Kowalski after watching his son drive off in a Toyota Land Cruiser at the beginning of the film Gran Torino.
The common refrain from past and present members of the U.S. auto industry has everything to do with the sector’s impact on the domestic economy. If you’re really concerned about your car’s “purity,” however, there’s an annual report that checks just how much domestic content went into every new vehicle sold on American soil.
This year, three controversial General Motors vehicles return to take the patriotic crown. But they’re still not fully American. (Read More…)
A company whose name is synonymous with performance wants to put down roots in Big Three territory.
Cosworth, the British manufacturer of specialized engine parts and electronics, aims to open a $30 million plant in the northern suburbs of Detroit by 2018, Automotive News reports. (Read More…)
Everyone and their 90-year-old great aunt knows that Tesla is putting all of its might into reaching a volume target of 500,000 vehicles in 2018, but more voices are now calling CEO Elon Musk’s timeline impossible.
Musk wants high-volume production to start in less than two years, but suppliers tell Reuters that the accelerated target is a pipe dream. Will delays in parts sourcing and other nitty-gritty issues throw cold water on Tesla’s plans (and customers’ Model 3 ownership dreams)? (Read More…)
There’s probably no s’mores or ghost stories, but Tesla founder Elon Musk is still a fan of camping out at his company’s Fremont, California production facility.
Musk admitted to giving his sleeping bag a regular workout during a recent earnings call, during which he outlined his production goals for the upcoming Model 3. The optimistic deadline of July 1, 2017 is now viewed as impossible (due to supply issues), but Musk is optimistic that significant quantities of the $35,000 EV will be out the door before New Year’s Eve.
Musk might need to splurge on an upgraded sleeping bag next summer. (Read More…)
Regulators may rain on Elio’s parade even before they got started.
That, Volvo takes a serious stab at full-size luxury conventional wisdom, the big get bigger and Ford’s hybrids only go so far … after the break!
Man, people are really pumped about the cool, expensive cars they just bought.
That nugget of wisdom, Russia’s perpetual Cash for Clunkers program, VW’s appeal to Colorado and Washington buyers and GM’s knows what way the wind is blowing now … after the break! (Read More…)
I wouldn’t be surprised if every morning in Tokyo executives at Takata hope that more revelations come out concerning Volkswagen’s diesel emissions cheating scandal so as to push any revelations about their own exploding airbag scandal down the page.
Last week, Honda accused Takata of “misrepresented and manipulated test data” in explaining why they decided to stop using Takata as a supplier.
On Monday, the Wall Street Journal, based on internal documents discovered as a result of lawsuits, reported that Takata engineers in the United States had expressed reservations about fudged test results going to Honda starting in 2000. (Read More…)