Gill Corp., a western Michigan stamping company that produces parts used by several automakers, is facing a financial insolvency that could result in an interruption of shipments to Ford, Fiat Chrysler and Toyota, according to a lawsuit filed by a key customer.
The financial problems led Gill to breach scheduling agreements, terminate shipments and make "ransom" demands from its customers before finishing other shipments, according to the lawsuit filed against Gill by German auto supplier Benteler Automotive Corp.
The suit, filed Nov. 8 in the 17th Circuit Court in Grand Rapids, Mich., contends that Gill has made extra-contractual financial demands and is planning to dissolve some operations, as first reported by MiBiz.
Gill manufactures component parts that Benteler incorporates into exhaust-system assemblies used in the production of the Chrysler Pacifica and Dodge Caravan minivans, the Jeep Wrangler and Gladiator, Ford Mustang and Toyota Corolla, according to court documents obtained by MiBiz.
This is the second major financial crisis that has gone public this month in the automotive supply chain. India-owned parts supplier Sakthi Automotive likely will liquidate its assets and shutter its operations in Detroit barring the emergence of a buyer, according to documents filed this month in U.S. District Court in Detroit. Representatives from Sakthi Automotive did not return phone calls on the matter, according to Crain's Detroit Business, an affiliate of Automotive News.