General Motors Sues Bankrupt Cadence For Access To Parts

Detroit, MI (AHN) - General Motors filed a lawsuit against bankrupt auto parts supplier Cadence for access to specialized parts needed to complete the new Chevrolet Camaro, avoiding a potential costly delay to the vehicle's launch date.

The lawsuit was filed on Wednesday with the U.S Bankruptcy Court in Delaware. GM is accusing Cadence Innovation LLC of holding parts and equipment it needs, thus breaching terms of a contract signed back in August.

Cadence filed for bankruptcy in August and is now in the processes of liquidating itself. The auto parts supplier provides door trim, air bag covers and instrument panels.

General Motors wants immediate access to the company's tooling since it does not have enough parts on hand, which will cause an interruption in the assembly operations of its Chevy Camaro.

"Even one day's disruption in supply of certain Component Parts could cause a shutdown of GM assembly operations, disrupting not only GM's business, but the operations of countless suppliers, dealers, customers, and other stakeholders," GM said in the complaint, according to Reuters.

GM usually holds a weeks worth of supplies on hand for assembly operations.

The automaker wants access to the parts and tooling so operations can run smoothly until it gets a new supplier in place by Jan. 12.