Once again bankruptcy’s plaguing General Motors, only this time the automaker isn’t the one possibly going under. Instead, Clark-Cutler-McDermott Co is, one of GM’s big parts suppliers. If the situation doesn’t go well, General Motors might not be able to build any new cars in the United States for a while.
The situation’s changing quickly, but as of right now this is where it sits: GM tried lending money to CCM, but negotiations blew up. CCM filed for Chapter 11 and GM tried to acquire the company’s assets. Instead of just letting that happen, CCM wants to ditch its contract with GM and sell off all its assets, leaving GM high and dry.
While it’s true that not all parts for GM vehicles come from CCM, the ones that do are pretty critical. Nobody wants to ride in a new vehicle that’s not insulated because it’d be annoyingly loud, and that’s mostly what General Motors relies on the company for.
GM executives must be sweating bullets, and rightfully so. The company would probably lose tens of millions of dollars, maybe more, while it tracks down a new supplier and waits for parts.
CCM and GM have been working together for 45 years. So much for loyalty.