GM Risk as a Result of Supplier’s Bankruptcy (WSJ)

Clark-Cutler-McDermott (CCM) produced 175 parts for GM and is the Detroit auto maker’s only supplier of certain interior and acoustic insulation parts. The 115-year-old company has been a General Motors “Supplier of the Year” four times in the last seven years, but has absorbed losses of $12 million since 2013. The company filed for bankruptcy protection on July 7, saying it was losing $30,000 a day as a result of its contract with GM. GM said supply disruptions caused by CCM’s bankruptcy and refusal to deliver parts and finished inventory threatened to cause disruptions at 19 GM assembly plants in North America and cost it tens of millions of dollars.

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