GM suing supplier to keep Camaro production going

Image via WikipediaGM seems to be facing all sorts of trouble these days, from begging for bailout money to public criticism to rumors of bankruptcy. The latest problem concerns supplier Cadence, LLC, which produces interior parts for the next generation Camaro. Cadence declared bankruptcy in in August, and is currently in liquidation proceedings. Joining Cadence in it's decent are the machines that GM needs to make parts for the Camaro.

If GM can't get it's hands on the tooling there will certainly be delays at the assembly plants. The General would then have to pay again to get the same tooling made, which would obviously be substantial. GM would like to have a new supplier in place by January 12, 2009 because Camaro production is slated to begin on February 16, with deliveries in mid-March.

So far, it's unclear as to who actually owns the machines in question - Cadence or GM - and Cadence has had nothing to say on the matter. Regardless, if GM doesn't get its way, then it has to spend a chunk of the money it just fought for to recover old ground. The most recent precedent isn't promising: Chrysler tried to get the tooling from bankrupt parts supplier Plastech, and was denied.