GM lawsuit with former 'supplier of the year'

20 January 2009

20 January 2009

Automotive firm General Motors has taken legal action against a former "supplier of the year" that has gone out of business.

The car manufacturer has filed a lawsuit against Cadence Innovation, which manufacturers interiors, trim and doors, to get access to parts already produced for GM and avoid disruption to production.

A spokesman for the car producer said although GM had worked with Cadence to help find them a buyer, it chose to take legal action after the vendor announced it was no longer looking for a buyer, but instead to liquidate its US operations. GM has recontracted Cadence's work and is also seeking access to some machinery.

Cadence originally filed for chapter 11 bankruptcy protection in August last year to give it time to find a buyer. At the time CEO Jerry Mosingo said collapsing revenue and double digit cost increases had caused the company's failure.

The vendor was awarded GM's supplier of the year in 2006 for "outstanding performance".


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