GM Reaches Deal With Bankrupt Parts Supplier, But Parts Supply Still Shaky

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.

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GM Handed 'Supplier of the Year' Award to Key Parts Maker After It Defaulted and Asked for Cash

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.

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GM Faces 'Catastrophic' Assembly Disruption After Parts Supplier Goes Bankrupt

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.

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How 'Made in America' is Your Vehicle, Really?

“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.

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British Invasion: Cosworth to Set Up Shop in Detroit

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.

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Musk Cracks the Whip on Tesla Production, Experts Say 'Get Real'

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)?

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Musk Admits to Factory Sleepovers as Tesla Gets Real on Production Forecast

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.

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TTAC News Round-up: Elio's Already on Thin Ice; Magna and Getrag Seal Their Deal, No Normal Buyer

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!

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TTAC News Round-up: Pumped About Porsche; GM's Going To Trial; And Diesel's Dead, Baby

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!

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Ignition Switches, Gas Pedals, Emissions Cheating & Exploding Airbags. Which is Most Scandalous?

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.

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Magna Completes $1.9B Acquisition of Transmission-maker Getrag

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.

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While You Were Sleeping: Chevrolet Sub-Camaro, Toyota/Honda Best Supplier Customers and Aston Martin's Crossover

As I fly down to Nashville to drive Nissan’s latest iteration of their 4DSC (“four-door sports car”) – the Maxima – we will have all the articles you expect on a Monday.

Here’s what happened over the weekend.

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GM to Suppliers: Open Your Factories, Books If You Want Long-Term Business

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.

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Suppliers Rule! The PACE of Automotive Innovation

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.)

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Hyundai To Build Mexican Factory After Sales Exceed 50K Per Year

Hyundai is planning on building a factory in Mexico, but only after annual domestic sales in the country rise to appropriate levels.

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  • InCogKneeToe 2 Words ok 4 from the article “a collision-free society”. There are just billions too many variables for it to ever be possible.Just a couple of weeks ago, a Deer ran into my vehicle, I was stopped at the time, what can "Sensing" do for that? Unless the Deer get Sensors too.And Society as a Whole has suffered from this belief. The belief that Someone or Something should Think for Me, I shouldn't have to. Common Sense is getting rarer and rarer every second the World Spins.
  • Sgeffe I’ve got no problems with the HondaSensing kit in my one-generation-wonder 2019 Accord Touring 2.0T. (Although, ironically, the telematics unit won’t receive incoming commands from stuff like the mobile app allowing for remote start and the like. First world problems; working with Honda on a resolution.)Unlike most people who probably aren’t aware of their vehicle’s owner’s manual, however, I don’t expect the technology to be anything more than an ASSIST! The car will watch the distance to the car in front, but if needed, I’m still hovering my foot over the brake if necessary. Even if the BSM light in the mirror isn’t on, I still glance over my shoulder. Et cetera.
  • THX1136 Thanks for the explanation, Jeff! Appreciate you taking the time.
  • ScarecrowRepair Stick-what? Maybe it needs a laxative.
  • FreedMike ...but is the monthly turn signal subscription also going up?