GM reaches settlement with supplier - WNEM TV 5

GM reaches settlement with supplier

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FLINT, MI (WNEM) -

A contract dispute and bankruptcy filing by a key supplier could force General Motors Co. to close all North American assembly plants according to court documents.

Those documents show the automaker relies solely on a small private business, Clark-Cutler-McDermott Co. for more than 100 acoustic insulation and interior trim parts. 

The company is based out of Franklin, Massachusetts.

The supplier stopped producing parts for GM after shifts on Friday and laid off its workforce, a source familiar with the company’s production plans told the Detroit News.

According to court documents, GM has no other supplier for the parts CCM provides and any interruption in production would cost the company “millions of dollars per day per plant."

GM said a halt in production of parts that the supplier has produced could create devastating consequences.

Tom Stewart has worked at the Flint Power Train Plant for more than a decade. He's optimistic the company will work things out before employees are impacted.

"I don't think anything will really happen because GM is such a big conglomerate. They'll either make a deal or find another group and continue operations," Stewart said.

GM announced they reached a settlement with CCM and do not anticipate any significant disruptions to their supply chain or business.

Read the document below:

A GM spokesperson also told the Detroit Free Press there has been no impact on vehicle production, yet. 

In court documents, Clark-Cutler McDermott states that with the current pricing with GM, "CCM is operating at a loss of more than $30,000 per day."

Read Clark-Cutler-McDermott Co.'s court motion below:

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