SMA out of business

[PARAGON]

Originally posted by Beastmaster:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by kdio:
I know a couple of people that deal with SMA from a manufacturing side and they are sueing SMA for non payment. They have a very bad reputation and it would not surprise me if GM is pulling the plug on SMA.

Yeah, but look at the chain.

GM to SMA to other suppliers.

GM doesn't pay SMA, SMA can't pay their suppliers. It's a total trickle down effect.

Because of this, SMA closes. Their suppliers (who are smaller than SMA) closes. When someone like GM hoses their cash flow management, everyone gets hit. The ripple effect really gets painful. </div></BLOCKQUOTE>I very seriously doubt it's quite as simple as that. SMA was the first provider for our accessories and was "the official" GM provider. Then they got competition and GM licensed with a bunch of other people for different accessories.

I also doubt they would be filing chapter 7 if GM was very delinquint on payments to them. If there was a contract, and services provided, it really doesn't matter what GM's financial woes were. SMA would have filed to restructure their debt or something, not just shut everything down and go under because they would have been paid.