DETROIT -- General Motors' decision to kill the slow-selling GMC Envoy XUV left a key supplier holding the bill for an estimated $10 million parts plant. The supplier has asked GM for a reimbursement.
GM spokesman Tom Wickham confirmed that the automaker is in talks with Inalfa Roof Systems Inc. of Auburn Hills, Mich., which supplied the power-operated sliding roof over the vehicle's cargo area. Wickham would offer no details.
The XUV, built in Oklahoma City, will go out of production on March 31.
Inalfa built its plant near GM's assembly plant in 2003.
The Daily Oklahoman put the cost of Inalfa's plant at $5 million. Engineering, research and development could double that amount.
Because Inalfa's plant was dedicated to the XUV's sliding roof, it had no other program on which to fall back. The plant has been closed.
Inalfa's plant was designed to accommodate GM's initial projections for 125,000 XUVs per year over four years, according to the Daily Oklahoman. Actual production was about 5 percent of that goal.
GM spokesman Rick Asher says GM never announced a production number for the XUV.
The XUV's best sales year was 2003, when 13,873 units were produced in four months. Production started in September 2003. Just 12,390 units were built in 2004.
Inalfa was not the only supplier affected by the XUV's cancellation. Eaton Corp., Lear Corp., Faurecia and Johnson Controls Inc. also supply the XUV.
Inalfa has not publicly said what GM's decision will do to its bottom line. But a $10 million loss at a company with $190 million in annual sales would wipe out a 5 percent profit -- a profit goal few suppliers can achieve these days.
Inalfa Vice President Michael Smith declined comment for this story, citing ongoing discussions over the project's cancellation.
GM's Wickham declined to discuss what, if anything, the automaker owes suppliers following a program cancellation. Such issues, he says, "are on a case-by-case basis."
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