A federal bankruptcy judge granted General Motors Co. permission Wednesday to cut ties with the Stillwater Mining Co. (Columbus/Billings,MT) so it can instead use cheaper foreign suppliers.
We should all consider buying American vehicles, remember this if GM is on your list of choices. They want you to buy American but it doesn’t apply to them. It looks as though this will cost hundreds of jobs just outside Billings, MT.
FYI – Stillwater and Ford are still doing business together.
A federal bankruptcy judge granted General Motors Co. permission Wednesday to cut ties with the Stillwater Mining Co. so it can instead use cheaper foreign suppliers.
The cancellation of the Stillwater contract was approved by U.S. Bankruptcy Judge Robert Gerber in New York following a hearing. No appeal is planned, said Stillwater spokesman John Beaudry. He said the only recourse could be through the Obama administration’s auto task force, which so far has not responded to calls for pressure on GM’s management.
Meanwhile, Montana’s U.S. senators called the move “appalling” for a taxpayer-subsidized company and asked GM to reconsider.
GM backed out of its arrangement with Stillwater and canceled dozens of other contracts to slim down expenses and emerge from federal bankruptcy protection.
It will keep using precious-metals suppliers based in Russia and South Africa – drawing criticism that the government bailout of the automaker is in effect subsidizing overseas mining jobs.
Stillwater itself is majority owned by one of GM’s remaining suppliers, Norilsk Nickel of Russia. Stillwater’s Montana executives said they’ll lose up to $10 million annually without GM – a figure that they warned could turn into hundreds of jobs lost if metals prices drop.
“GM was left with no other decision,” said GM spokesman Dan Flores. “Our biggest focus is to repay our federal loan as quickly as we can.”
Montana’s elected officials piled on.
“I can remember when GM wanted everyone to buy American. Perhaps it and its new owners in Washington should take their own advice,” said the state’s sole House member, Republican Rep. Denny Rehberg.
