General Motors won court approval Wednesday to retrieve tooling and finished parts from a key longtime Massachusetts supplier that is reorganizing under U.S. bankruptcy protection, avoiding a shutdown of most of the automaker’s North American assembly plants.
GM obtained immediate access to production tooling and parts inventory from Clark-Cutler-McDermott Co., a Franklin, Massachusetts, supplier of acoustic material that filed for bankruptcy protection on July 7.
GM said Wednesday it also has identified other suppliers to provide the automaker with similar parts going forward. A GM spokesman declined to identify the suppliers.
GM and Clark-Cutler-McDermott reached as agreement after a hearing was held at the U.S. Bankruptcy Court for the District of Massachusetts.
“We have reached a settlement with Clark-Cutler-McDermott and do not anticipate any disruptions to our supply chain or business,” a GM spokesman said.
Clark-Cutler-McDermott makes dash insulators, wheelhouse liners, floor insulators, fender and pillar insulators and other parts used in all GM cars and light trucks assembled in North America.
GM had no other suppliers of the parts.
Clark-Cutler-McDermott filed for Chapter 11 bankruptcy protection after GM filed a motion to acquire equipment and tooling owned by GM and certain inventory.
The automaker is the supplier’s largest customer by volume, accounting for more than 80 percent of its revenue. Clark-Cutler-McDermott has supplied parts to the automaker for 45 years, court documents said.