A Chapter 11 bankruptcy protection was filed on Thursday, July 7, by Clark-Cutler-McDermott Co. After GM has processed the motion to acquire the needed equipment and inventory that is owned by the company.
CCM is finding ways to reject the contracts that they have with GM. They are currently selling their remaining assets.
Dash insulators, wheelhouse liners, floor insulators, fender and pillar insulators are some of the products that the supplier supplies GM with. It centers its base in Massachusetts, serving as the main point of the North American production line.
GM does not have other relationships with part suppliers.
GM spokesperson Pat Morrissey said in an email statement that the company will be having a court hearing on July 13 to discuss the problem. He says that there is no need to worry about the situation because GM's supply chains are not going to be affected by this bankruptcy.
A relief from the U.S. Bankruptcy Court District of Massachusetts, Eastern Division is requested by General Motors, to acquire the company's rightful ownership that the bankrupt supplier has. If GM successfully acquires all of the needed equipment and inventories, the North American supply chain would hardly be affected by this downturn of events.
The company admitted that if the proceedings will fail, the production line would surely be negatively affected by this. According to the GM lawyers, the damages of the company's supplier could result to millions of dollars of damage for every plant per day.
The problem will also cause GM to suffer massive losses due to its inability to deliver the vehicles and produce more of them. The parts are vital for the manufactured vehicles, making it very destructive if things happen this way.
General Motors is CCM's largest customer by volume. GM is responsible for 80 percent of profits it has yearly.
The business relationship that GM has with CCM has finally stopped after 45 years.
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
