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Discussion Starter #1
Being that it's now public knowledge that Collins & Aikman are the supplier for the Solstice top... has anyone been following the news articles?

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8487393

http://www.newsday.com/business/nationworld/wire/sns-ap-collins--aikman-ceo,0,4371842.story?coll=sns-ap-business-headlines

The company was delisted from the NYSE this week, then the CEO resigned, and it appears that their debt load (over $2 billion) is a little more than they can handle at this time.

The company (as of earlier this week) had $13.4M in cash, and debt load requirements of $26.9M due June 30th and $26.7M on August 13th. As big of a supplier as they are the courts wouldn't let them fold and run... but that just means the impact is felt further down the supply chain. I've been gone on company training the last few days so I just caught up with this news today but didn't see a topic post on it and thought it might be of interest.
 

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Say it isn't so! Hope nobody here has a job in jeopardy as well. That's first and foremost.

What could this mean for production delays, etc? How about replacement tops in the years to come?
 

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There are people in fear of their job

I work for Collins & Aikman, although things do look a bit grim right now at work I do get a funny feeling that things will be all right. David Stockman (the newest ex CEO) :cuss: never did much to help the company. Charles Becker (the new practicing CEO) is an automotive guy, even if we file chapter 11 I think that we will come back strong. Internally there is also some other talk that some of the commodity based groups within C&A may be sold off....will Dura Convertables be one of them....who knows. Does this jeopardize the Solstice...I think not!!! I also understand that there really arent any major issues with the convertable top fit right now. I actually work with a few of the people working that program.
 

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Discussion Starter #8
2KWK4U said:
Say it isn't so! Hope nobody here has a job in jeopardy as well. That's first and foremost.

What could this mean for production delays, etc? How about replacement tops in the years to come?
Well.. no matter what happens to C&A, GM wouldn't let the tooling (they own it afterall) disappear. If nothing else a new supplier would be picked to take over the program. Supplied parts would be delivered to the new supplier, and all tooling, assembly fixtures, etc. would be transfered. That's not an uncommon thing (to transfer programs from one supplier to another) and something GM could do eaisly.

The difficult part comes if there are indeed problems with the top, and a transfer has to take place. That's when the new supplier runs into issues trying to solve something they didn't design and don't have specific knowledge in.

With all that being said... I don't work for C&A, Dura, or anyone associated with the production of any parts on the Solstice. In fact, I recently took a position with a new company and am no longer in the automotive industry (however I still maintain my contacts as best as possible). I saw that this hadn't been posted, and felt it was a resonable topic for discussion and certainly don't want to create a panic. I know nothing specific except what was in the many news articles I've read, but will certainly be following this development.
 

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Roadster1 said:
I work for Collins & Aikman, although things do look a bit grim right now at work I do get a funny feeling that things will be all right. David Stockman (the newest ex CEO) :cuss: never did much to help the company. Charles Becker (the new practicing CEO) is an automotive guy, even if we file chapter 11 I think that we will come back strong. Internally there is also some other talk that some of the commodity based groups within C&A may be sold off....will Dura Convertables be one of them....who knows. Does this jeopardize the Solstice...I think not!!! I also understand that there really arent any major issues with the convertable top fit right now. I actually work with a few of the people working that program.
Thanks for the update roadster1, hope it all works out for you and your co-workers.
 

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I'm glad to hear your gut feeling is it won't effect the Solstice. When I first read the links I thought I might be getting a car that was exactly like the show car (Sly, two tone sand/gray interior and no top in the boot!)

Sounds like Stockman's taken voodoo economics to the private sector! :cuss:
 

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Discussion Starter #11
DreamerDave said:
Sounds like Stockman's taken voodoo economics to the private sector! :cuss:
While I certainly don't like what happened... I can't say that the practice isn't common. The important thing to realize here isn't that C&A did something wrong, but that due to the bond ratings of GM and Ford falling into "junk" status C&A was forced to make a payment on their debt.

I haven't found anything which stated how large of a payment they needed to make, but it was certainly not a planned event. I'd like to know if they had enough cash (without this surprise payment) to make their exisiting payments this summer which were on their liabilities to begin with. My first impression is they were not in the best position to make that payment... but that is simply my thought based upon the drop in their stock recently.

What happens to a public company that gets delisted... do they still have to file a public earnings statement? I'm guessing yes, since they are still a publicly held company... even though they are not tradable on the NYSE, they might be listed on another index. I'd like to see thier books for 2004 and 1st quarter of 2005 if someone finds a link.
 

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Discussion Starter #13
LBJay said:
While I thank you for the link, I guess I should have been more descriptive. I haven't found a 4th quarter for 2004 yet, and I haven't seen anything for the 1st quarter of of 2005. The link does provide information prior to that for those interested.
 

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The difficult part comes if there are indeed problems with the top, and a transfer has to take place. That's when the new supplier runs into issues trying to solve something they didn't design and don't have specific knowledge in.
This is true. In my field, World Com was the EZpass vendor. When WC went belly up, a new company was selected. Unfortunately, the new vendor hadn't a clue about the software designed by World Com. One adjustment after another for three years or so. We called it "The Transition Period." It created plenty of problems for everyone involved, at every level.
 

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Solstice Top in Jeopardy

Whoa! I thought you meant the game show. "I'll take AFBTS's for $500, Alex." :crazy:
 

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mceb said:
Too funny :glol:
I can see a whole episode of Jeopardy based on the Solstice...

Me: I'll take "Folding Tops" for $300 please.

Alex: These unsightly rubber stumps are thought to help prevent leaks.

Me: What are "baby arms"? Storage for $200, Alex.

Alex: This storage compartment can hold gloves, glasses and little else.

Me: What is "the trunk".

Alex: No, I'm sorry. The answer we were looking for is, "glove compartment". The glove compartment. Oh wait! The judges are considering that answer. Yes "trunk is an acceptable answer! Your turn again.

Me: How about "Coupe Rumors" for $1000, Alex.

WOOP, WOOP, WOOP. The Daily Double!
 
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