GM, Goodyear deal averts stalemate for now

Detroit, Michigan -- A deal late last week between Goodyear and General Motors Corp. (GM) temporarily averted a stalemate that had threatened to disrupt the opening of automaker´s plant in Delta Township, Michigan.

GM said late 4 Aug that Goodyear has resumed shipment of tyres, easing fears that a simmering dispute over prices would create shortages at Delta Township and other GM plants.

In a 31 July lawsuit filed in suburban Detroit, GM sought an injunction ordering Goodyear to keep delivering tyres.

According to the suit, Goodyear had told GM on 19 July that it would cease work on tyres for the Lambda programme, the GMT900 SUV platform and commercial trucks unless terms of the contracts were changed.

The Delta Township plant, near Lansing, is scheduled to make the GMC Acadia and Saturn Outlook crossovers this year and the Buick Enclave crossover in 2007.

All are built on the Lambda platform.

GM also said in the suit that the dispute could force the shutdown of other plants.

The company said during proceedings that Goodyear had refused to comply with the terms of its contracts unless GM met Goodyear´s "unilateral demands" of higher prices for tyres.

It was not clear late on 4 Aug if the agreement was merely a stopgap measure or if agreement had been reached on key pricing issues.

A GM spokeswoman said production at the Delta Township plant would proceed as scheduled.

A Goodyear spokesman confirmed 4 Aug that the company was shipping tires to GM but was not able to comment on the status of the lawsuit.

From Rubber & Plastics News (A Crain publication)