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Article: Long GM shutdowns could cripple suppliers.(NEWS)(General Motors Corp.)
- Article from:
- Automotive News
- Article date:
- April 27, 2009
- Author:
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Robert Sherefkin and David Barkholz
A nine-week summer shutdown at most of General Motors' North American plants could bankrupt as many as 10 percent of GM's top 300 parts makers, says a source familiar with GM's thinking.
The 300 top suppliers ship more than 80 percent of the parts that go into GM vehicles. The automaker has 1,500 parts suppliers, all of which will suffer from the shutdown.
The 300 range from small companies such as mirror maker Gentex Corp. to multibillion-dollar enterprises such as seat maker Lear Corp.
GM spokesman Dan Flores declined to comment on the likelihood of bankruptcies. But he acknowledged that the ...