Gathering Clouds or Raging Storm? (Indianapolis)

There has been a sea change in the global automotive industry within the last few months and the prognosis is not encouraging. The collapse of the subprime mortgage market in the United States and the resulting worldwide financial crisis has caused a near-strangulation of consumer lending and a climate of severe angst among individuals anxious about their jobs and their futures. This has translated into plummeting sales of motor vehicles worldwide which, in turn, has caused the original equipment manufacturers and everyone else in the automotive supply chain to hemorrhage cash. The
federal bailout of General Motors and Chrysler has not allayed the fears or dampened the expectation that one or both of these automakers will seek bankruptcy protection soon. Even traditionally healthy transplants are suffering. Witness Toyota, which just announced its first annual loss in its 71-year history.

What would be the impact upon the non-OEM members of the automotive supply chain in the event that one or more automakers filed for Chapter 11 relief? What issues would Tier I and Tier II suppliers, as well as tool builders, immediately face in such a bankruptcy? Time will be of the essence for these suppliers if this happens. A supplier’s failure to act quickly and aggressively during an OEM’s death spiral could result in disastrous consequences for that supplier, including the filing of its own bankruptcy petition.

A panel of Barnes & Thornburg attorneys will address these issues and
recommend strategies to you for coping with an OEM bankruptcy. Please join us in your area for this informative seminar.

We are pleased to provide this seminar at no charge.