Dura negotiates new GM supply agreement in light of raw materials price hike

By Caroline Salls

Pittsburgh, Jan. 25 - Dura Automotive Systems, Inc. has reached an agreement with General Motors Corp. to allow pricing adjustments necessitated by an increase in raw material costs, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The agreement is subject to court approval.

According to the motion, Dura manufactures parts used by GM to make vehicles.

However, Dura said it has been forced to absorb the cost of more expensive raw materials needed to meet its obligations to GM because it had no way to raise the prices under its GM contracts.

As a result, Dura and GM have negotiated an agreement under which Dura will be assured of fair increased pricing for the parts they supply to GM.

In addition, Dura has agreed to assume related GM purchase orders and steel resale contracts.

The specific terms of the agreement were not released.

A hearing is scheduled for Jan. 29.

Dura, a Rochester Hills, Mich.-based automotive parts maker, filed for bankruptcy on Oct. 30, 2006. Its Chapter 11 case number is 06-11202.

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