Photo: General Motors
As I’m sure you have already heard, Clark-Cutler-McDermott (CCM) is in a bit of a pinch, as is General Motors. The 105-year-old company has been working with GM for four and a half decades now, yet Clark-Cutler-McDermott has just filed for bankruptcy.
Without the acoustic insulation and interior trim products produced by Clark-Cutler-McDermott, General Motors finds itself between a rock and a hard place. Happily, however, the American carmaker worked out what to do with the CCM bankruptcy. As per a report published by Automotive News, GM won court approval to retrieve tooling and finished parts from Clark-Cutler-McDermott Company.
Through this move, General Motors narrowly avoided a shutdown of most of its North American assembly plants. “We have reached a settlement with Clark-Cutler-McDermott and do not anticipate any disruptions to our supply chain or business,” a GM spokesman told Automotive News.
This is great news for General Motors as an automaker, the tens of thousands of GM workers, and the customers waiting for their cars and trucks to be assembled and delivered.
Considering that General Motors accounts for more than 80 percent of Clark-Cutler-McDermott Company’s profit, and GM had no other suppliers for the parts manufactured by CCM, things couldn’t have worked out better than this. Simply put, General Motors now has access to the tooling and inventory of the Massachusetts-based outfit.
This doesn’t mean that General Motors bought Clark-Cutler-McDermott outright, but gained access to certain production equipment, tooling, as well as finished parts. Before General Motors worked around the Chapter 11 bankruptcy of Clark-Cutler-McDermott, the biggest of the Big Three manufacturers in Detroit had lost five days searching for a substitute supplier.
If CCM were to agree to hand over the tooling and finished parts before General Motors took this problem to a federal bankruptcy court judge in Massachusetts, then all this mishmash wouldn't have happened.
Through this move, General Motors narrowly avoided a shutdown of most of its North American assembly plants. “We have reached a settlement with Clark-Cutler-McDermott and do not anticipate any disruptions to our supply chain or business,” a GM spokesman told Automotive News.
This is great news for General Motors as an automaker, the tens of thousands of GM workers, and the customers waiting for their cars and trucks to be assembled and delivered.
Considering that General Motors accounts for more than 80 percent of Clark-Cutler-McDermott Company’s profit, and GM had no other suppliers for the parts manufactured by CCM, things couldn’t have worked out better than this. Simply put, General Motors now has access to the tooling and inventory of the Massachusetts-based outfit.
This doesn’t mean that General Motors bought Clark-Cutler-McDermott outright, but gained access to certain production equipment, tooling, as well as finished parts. Before General Motors worked around the Chapter 11 bankruptcy of Clark-Cutler-McDermott, the biggest of the Big Three manufacturers in Detroit had lost five days searching for a substitute supplier.
If CCM were to agree to hand over the tooling and finished parts before General Motors took this problem to a federal bankruptcy court judge in Massachusetts, then all this mishmash wouldn't have happened.
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