Plastech woes continue: GM seeks permission to move tooling operations if necessary
03/13/2008, 3:13 PM
By Drew Johnson
Although courts ruled in favor of Plastech Engineered Products Inc. earlier this year, it appears as though the U.S.-based plastic supplier’s legal troubles are far from over. General Motors has asked a U.S. bankruptcy judge for permission to take its tooling operations from Plastech in the case that the supplier fails to deliver parts to GM.
According to Automotive News, GM is concerned about “the limited amount and duration” of Plastech’s interim financing. Because of the supplier’s financial situation, General Motors feels that a stoppage in supply is a very real possibility, which could result layoffs and a significant loss of production.
Plastech filed for Chapter 11 bankruptcy protection on February 1st of this year.
If GM is granted permission, it would be allowed to move its tooling operations — including machinery — to another supplier in the case that Plastech fails to deliver parts to GM.
Chrysler was denied permission in a similar case last month. However, Chrysler sought to take its tooling operations from Plastech immediately whereas GM is only looking for permission to move its tooling operations if Plastech fails to deliver parts.
03/13, 3:21 PM
posted by:
audi-lover
GM SUCKS DICK!
03/13, 3:27 PM
posted by:
Kenny W
LLN really needs moderators.
03/13, 4:05 PM
posted by:
loudpedal
Ever since Lopez’s initial cuts in the mid-90s, the Big Three have been relentlessly demanding price cuts year after year. Although I hate to see the suppliers in such dire financial trouble, I’m glad to see GM reaping the long-term consequences of their myopic vision.
03/13, 4:15 PM
posted by:
driver54
Loudpedal, that post it too smart for the current batch of LLN posters.
03/13, 4:19 PM
posted by:
GLAAD cyberpolice
Cool. LP’s posts are gone.
03/13, 4:40 PM
posted by:
injunraiv
LP, do you think that GM is any different from Toyota, Honda, Audi, or any other manufacturer? Hell, do you shop at Wal Mart? They do exactly the same thing to their vendors.
03/13, 4:41 PM
posted by:
F451
The possibility of this situation getting even more twisted is at hand considering all the dynamics, including Cyberus. GM needs to be constantly proactive.
03/13, 9:41 PM
posted by:
johnnycanuck
This Plastech sounds like a real loser of a company. How the hell can you be doing the tooling for the likes of GM and Chrysler and be losing money? What, like they don’t use enough plastic in their vehicles?
03/14, 12:42 AM
posted by:
sharpie
Bankruptcy doesn’t mean a company is losing money automatically. In some cases, it is. A company in Ch.11 could be operationally sound, but financially in trouble and needs reorganization. Remember, we don’t live in a world where customers pay when the goods are delivered anymore. Most use some forms of credits such as account receivables. For companies like GM and Chrysler, they might just be big enough to tell Plastech that they would delay paying for another 30 days or so. Smaller businesses have very little leverage in protesting. What could Plastech do at that point? Threaten not to deliver the parts and risk losing those big contracts? If this is the case, GM and Chrysler have brought it onto themselves partly.
03/14, 8:19 AM
posted by:
1c3d0g
johnnycanuck: agreed. It’s unbelievable to me that the day-to-day operations of the Domestics are f*cked over by a company like this and apparently they won’t even suffer any consequences since they’re already bankrupt. Let’s just call it what it is, this is bullsh*t!
03/14, 9:38 AM
posted by:
rockstars
Did those moderators disappear or something?
03/14, 9:45 AM
posted by:
jayjc08
I’ll be the first to say, I’m going to stop posting on LLN, and I’ll receive my news somewhere else. Seriously, this has been going on for almost a year and a half now, I’ll take my leave until moderators do their job and LLN can learn to spell correctly. I urge some of you to do the same, atleast temporarily.
03/14, 12:31 PM
posted by:
hateful83
Doesn’t matter to me that they can’t spell. I can’t really spell either, and they’re not getting any money off of me, so.