Auto companies to suffer if parts maker reneges on ‘burdensome’ contract

By Robert Sherefkin

DETROIT — The Big 3 and some of their largest suppliers say they face disastrous consequences if a key parts maker is allowed to reject their business.

Damages in the hundreds of millions of dollars and thousands of layoffs will follow if Intermet Corp. of Troy, Mich., is allowed to reject hundreds of what it calls unprofitable contracts, according to a motion by attorneys for U.S. automakers and suppliers in a bankruptcy court filing last week.

Intermet, a key supplier of ferrous castings for suspension…

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