A key plastic parts supplier for Detroit 3 light trucks has sought creditor protection in U.S. Bankruptcy Court.
Blackhawk Automotive Plastics Inc. of Salem, Ohio, sought Chapter 11 protection late last week following unsuccessful negotiations with some of its key vendors and bankers, according to court documents.
The company supplies parts for the Ford F-150 and Explorer, GMC Envoy and Chevrolet TrailBlazer, as well as Chrysler LLC vehicles.
Blackhawk is the fourth significant U.S. auto supplier to file for protection this year. The others are Remy International Inc., ASC Inc. and Citation Corp.
Blackhawk also joins a growing list of injection-molded parts makers seeking court protection. All were squeezed by higher raw material prices and an inability to recover the higher costs from their customers.
Blackhawk determined that the best way to sustain its business value, protect its customers needs and preserve jobs was to seek creditor protection, according to documents filed with the U.S. Bankruptcy Court for Northern Ohio.
Neither the companys attorneys nor a company representative could be reached.
Blackhawk employs 1,574 people. It posted sales last year of $136 million, according to court documents.