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.
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.
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.
“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.
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.
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)?
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.
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.
Supplier and sometimes-assembler Magna International will buy German transmission-maker Getrag for roughly $1.9 billion, the Detroit News is reporting.
The deal would firmly plant Canadian-based Magna International as the world’s second-largest parts supplier behind Robert Bosch GmbH and ahead of ZF, which recently purchased TRW Automotive for $12.4 billion earlier this year.
“The trend among the suppliers is that we now have to be bigger as the auto makers go to us to do more for them,” Magna Chief Executive Don Walker told the Wall Street Journal on Thursday.
If you’re a parts supplier to General Motors, you have two choices: bid for business as it comes up or open your books and factories to skip the bidding process.
According to Automotive News, the latter option is part of GM’s One Cost Model launched in 2013, allowing the automaker to analyse a supplier’s internal cost data to identify cost-cutting opportunities. In exchange, suppliers can receive exclusive parts contracts that can last the lifecycle of a model and GM will not put that particular piece of business up for bid.
This all requires a significant amount of trust from suppliers, a commodity which has been lacking at GM since the ’90s.
Suppliers are integral to new technology in the auto industry to an extent not true since the early years of the 20th century, when ventures such as Ford began as mere assemblers, not manufacturers. That will be highlighted on Monday at the 21st PACE “academy awards” for supplier innovation. (For those not in the know, Monday’s the opening night of the SAE [Society of Automotive Engineers] in Detroit.)
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- Probert It's worth pointing out that this car gets this great range due to its very low cd rating. It ha a relatively small 77kw battery. This aero efficiency gives it about 50 more miles relative to the ioniq 5, which uses the same powertrain. KIA/Hyundai make really good EVs. Hopefully this becomes more common.
- ToolGuy My Author has a high level of self-absorption (nothing wrong with that, maybe).Corey you are a Lexus buyer. Told you already but you are pacing yourself (nothing wrong with that, maybe). Keep scratching off non-Lexi from your list and you'll be fine (maybe).Congrats on the new job/new industry.
- ToolGuy The [url=https://en.wikipedia.org/wiki/Jeep_Cherokee_(XJ)]XJ platform[/url] is super interesting to me, more so after owning one and working on it some (but not a lot, because it didn't need a lot). The overall size is almost perfect; add more space to the back seat (and carry it to the wheelbase) if we are starting over.One could argue, if one knew anything about vehicles, that the 4-door XJ is a major reason why U.S. fleet [all of everyone's vehicles averaged together] fuel economy is so bad in 2023.
- ToolGuy ToolGuy can't solve all the issues raised here tonight, but this does remind me that I have some very excellent strawberry jam direct from Paris in the fridge.
- ToolGuy Cool.(ToolGuy supports technology advancement, as well as third-person references)