GM Averts Production Crisis Caused by Bankrupt Supplier

General Motors Co. has received court approval to gain immediate access to inventories and production equipment owned by a sole-source supplier of acoustic parts used by most of its factories in North America.

GM had argued before a U.S. bankruptcy court in Massachusetts that last week’s bankruptcy filing by Clark-Cutler-McDermott Co. would soon idle more than a dozen of its assembly plants. CCM, a GM supplier for more than 50 years, generates more than 80% of its revenue from sales to the company. But the supplier claims in court documents its deal with GM lost $12 million over the past three years.

The court granted GM rights to retrieve special tooling and finished parts supplies. GM says it has identified unnamed multiple suppliers that will be able to make the parts, which include wheel well liners and body insulators.