GM sues bankrupt auto parts supplier

General Motors Corp. is suing a bankrupt automotive supplier based in Troy for immediate access to specialized parts and equipment, arguing that a delay would hamper the launch of the new Chevrolet Camaro, disrupt GM's assembly operations and cause millions of dollars in damages.

In a filing with the U.S. Bankruptcy Court in Delaware, GM accused Cadence Innovation LLC of "holding hostage" the parts and tooling equipment the automaker needs, and said Cadence was breaching the terms of an agreement signed with the automaker in August. The suit was filed Christmas Eve.

Cadence, which GM once hailed as its 2006 supplier of the year, filed for Chapter 11 bankruptcy in August, and began liquidation proceedings earlier this month. The automotive supplier makes door panels, air bag covers, consoles and other parts at plants in Clinton Township, Chesterfield, Fraser and Hillsdale. In addition to GM, it supplies parts to Ford Motor Co. and Chrysler LLC.

GM wants immediate access to the parts and equipment so it can have a new supplier in place to begin making components by Jan. 12 to avoid a major disruption to its assembly operations.

"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," the lawsuit said. Detroit Free Press