GM bankruptcy may affect Nebraska parts plants

[Omaha Steve]

http://www.omaha.com/index.php?u_page=1208&u_sid=10644711

Published Tuesday June 2, 2009
GM bankruptcy may affect Nebraska parts plants
BY CHRISTINE LAUE
WORLD-HERALD STAFF WRITER

General Motors' bankruptcy filing could affect at least three Nebraska automotive parts plants more than Chrysler's April bankruptcy did.

Several local GM dealers, meanwhile, expressed optimism that the bankruptcy was a positive step toward recovery.

GM is a bigger customer than Chrysler for at least three Nebraska plants, so Monday's Chapter 11 filing threatens to strike a greater blow if the court protects GM from suppliers that are owed money and closes auto plants as planned.

Parts suppliers already are suffering because automakers have reduced production.

GM work represents 20 percent to 25 percent of the volume at the Tenneco plant in Cozad, Neb., said Jay Edwards, human resources manager. Chrysler makes up less than 1 percent or 2 percent, he said.

The plant makes shock absorbers for GM's SUVs and light trucks and employs about 485 people, he said.

Edwards said the company doesn't expect layoffs, but company officials still are determining the potential impact.

"While there are no guarantees, we believe that GM's efforts to support the suppliers, combined with our efforts to minimize our financial exposure, should not result in a significant loss to Tenneco from the GM bankruptcy," Edwards said.

FULL story at link.