Parts Suppliers Pull Out Of GM Contracts

Law360, New York (April 26, 2006, 12:00 AM EDT) -- Bankrupt auto parts maker Collins & Aikman Corp. has asked a bankruptcy court for permission to change some of its contracts with General Motors, echoing the moves of several other struggling suppliers seeking to cut costs.

The contracts in question require Collins & Aikman to provide GM with cockpits, instrument panels and center consoles for its vehicles. In 2005, the two companies amended the contracts, so Collins & Aikman received better prices for the parts it supplied to GM.

Collins & Aikman has already changed several...
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