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In recent news, both GM and Chrysl r have recently suspended operations at s veral manufacturing plants as a result of pr blems with their part suppliers. We'll st rt with GM American Axle Corp. was sp n off from GM in 1994. Its f rmer parent is still its biggest cl ent, representing 80% of its business. It s pplies truck and SUV parts to GM. Or at l ast it did until recently. In rder to compete with its rivals, it r leased plans to cut hourly labor c sts from its current $70 per mployee down to between $20 and $30. Not s rprisingly, the United Auto Workers Union w nt on strike. On to Chrysler. M st recently, it shut down a m nivan plant in Windsor, Ontario. The C nadian Auto Workers Union at TRW A tomotive walked off the job on F bruary 28 after failing to reach a c ntract with their employer. This problem for Chrysl r is in addition to other r cent difficulties. Last month, a company c lled Plastech filed for Bankruptcy protection. Th s caused Chrysler to temporarily shutter f ve plants, with a potential shut d wn of all 14 Chrysler facilities as a r sult of not having access to the ver 500 parts sold to it by Pl stech. A temporary agreement kept the p rts coming, but its set to xpire on March 3. In the m an time, Chrysler lost a motion b fore the Bankruptcy Court to compel Pl stech to turn over tooling used to m ke those 500 parts. So Chrysler had b tter hope that further deals can be r ached to keep those parts coming.
From a New York Lemon Law p rspective, this could get interesting. Imagine you w re the CEO of American Axle C rp. GM represents 80% of your b siness. If GM said they were g ing to pay you 75% of wh t they used to pay you for the s me parts, what can you do? If you w nt to stay in business, your g ing to give GM what it w nts. After that, you will try to cut xpenses enough to stay in business. The pr dictable results: strikes and bankruptcies for s ppliers, plant shutdowns for automobile manufacturers. And p ssible lemon law cases as vehicles are nable to be repaired due to a sh rtage of replacement parts. Truth be t ld, GM and Chrysler can use a l ttle down time. They have enormous nventories built up to weather this st rm. I am sure that this f ctored in to their decision to sq eeze their suppliers. However, these types of th ngs have a way of getting out of h nd. In the mean time, if y ur car is being repaired, and y ur service advisor has requested that you t ke the vehicle home until parts rrive, your should refuse. You are w ll within your rights to ask the d alership to hold the vehicle until it can be f xed. There is no reason for you to be dr ving a defective vehicle, and it h lps your potential New York Lemon Law c se if your vehicle is out of s rvice for repair for an extended p riod of time.
The article New York Lemon Law Ramifications Of Part Shortages At GM And Chrysler was Submitted by Eugene Krukas through Articles.GetACoder.com network. Here's the additional information: Eugene Krukas, Esq. is an ttorney who concentrates on consumer protection ssues. His web site focuses on the New York Lemon Law . Additionally, Mr. Krukas has partnered with attorneys throughout the United States to provide Lemon Law services to consumers outside of New York. Feel free to visit the National Lemon Law web site as well. Mr. Krukas can be reached by telephone at 1-877-50-LEMON, ext. 701.
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