X

Corvette Parts Supplier Files For Chapter 11 Bankruptcy

A Michigan-based supplier that produces tube assemblies and transmission components for the Chevy Corvette has filed for Chapter 11 bankruptcy.

According to a recent report from Crain’s Detroit Business, Erin Industries Inc. recently filed for Subchapter V of Chapter 11 bankruptcy protection. The company experienced a downturn over the course of the last two years as a result of rising material costs and supply chain disruptions.

The family-owned company was founded in 1975, and serves as a supplier for the automotive and aerospace industries, including components for the Chevy Corvette. According to Erin Industries owner and President, Steven Atwell, most of the company’s customers offered price increases for steel, but not other inputs like labor or fuel.

However, the company’s profitability reversed most dramatically following a deal with steel maker Nova Steel USA Inc. The deal was entered shortly before the pandemic, after which it became difficult for Erin Industries to procure the parts needed to fulfill the contract. According to court documents, Nova is the largest creditor in the case, with $869,865 owed by Erin Industries.

Erin Industries is primarily a tier-two supplier, with 41 workers onboard. In addition to supplying parts for the Chevy Corvette and GM, the company also serves as a supplier for Ford and Stellantis.

According to Atwell, the company will likely survive bankruptcy reorganization. However, assuming the company does survive, it will then be forced to contend with the looming rise of electric vehicles as internal-combustion-powered passenger vehicles are eventually eliminated.

“We’re trying to get into that market like everybody else is, too,” Atwell told Crain’s.

“It means a lot to me that I have people working for me for over 25 years, so we’re a family business all the way down,” Atwell added. “I will keep them a place to work. I owe them that.”

Subscribe to GM Authority for more Chevy Corvette news, Chevy news, GM business news, and around-the-clock GM news coverage.

  • Sweepstakes Of The Month: Win a 2023 Corvette Z06. Details here.
Jonathan Lopez: Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

View Comments (17)

  • "internal-combustion-powered passenger vehicles are eventually eliminated"
    RIP GM if you think electric is the future without looking past the demise of any electrics that aren't solid state.

    • In your lifetime or beyond they will be eliminated. Like it or not there is a finite supply of fossil fuels. No choice about it. They will eventually be eliminated. Thankfully there are superior technologies to pursue in their place.

  • I own a family business & feel his pain! How many eggs & how many baskets do you think these auto makers are willing to gamble on battery electric!!

  • Watching all of these power companies and tree cutting companies heading to Florida, in anticipation of the hurricane, this week. Can you imagine a disaster response with everyone having to stop and charge their trucks? How would they get around in a city with no power?

    • Wouldn’t gas vehicles have the same problem as electric vehicles: scarce gas due to storm interruptions to refining and delivery?

      • Good luck feeling comfortable driving your electric vehicle onto a partially flooded street filled with saltwater! One of my favorite photos from recent Kentucky floodwaters was electric vehicle charging station amid a pond, yep stand in water while plugging in a high voltage rapid recharger.

      • No, you can carry gas cans but you can't carry extra electric. Maybe if you carry a gas generator to charge electric.

    • Gas pumps also require power. If there is no electricity there are no working gas pumps. Sure, fuel can be physically siphoned or delivered by a truck, but it is still a consideration.

      Gasoline and diesel fuel for commercial and industrial vehicles will remain for years, if not decades, after the demise of ICE powered, personal passenger vehicles. Those commercial and industrial customers will most likely have private, dedicated fuel depots for refilling. Retail gasoline stations will gradually close and disappear and be replaced by public EV quick charging stations.

      • The power supply to gas stations in Florida is a non-issue. By law, stations adjacent to highways and major roads are required to have permanently mounted generators adequate to supply the location in the event of a long-term power outage. We've done this before.

  • Chapter 11 isn't the end of the world financially. In fact, it can provide some unique opportunities to re-organize and right the ship. Unfortunately, it also casts an unfair negative aura over reputation. Good Luck

  • Family/small business operations are a unique part of the eco-system, used by large(r) companies. It would seem as though, if this company makes needed parts for the "Big Three", they could assist them by taking a 1/3 each of their outstanding debt and keep production moving.

    To Ford or GM, what's $400,00.00 in the grand scheme of things? Look at that fiasco with Ford right now with just one vendor to provide logos to put on finished vehicles...

  • Another excuse for not being able to produce the C8/Z06. As a previous small business owner, I feel sorry for the business needs to file for bankruptcy. Bottom line GM should not put all its eggs in one basket for parts. I received an email today from Chevy - Living Electric Has Never Been Easier, EVS FOR Everyone, Everywhere, An ALL-Electric Lineup For All Of Us! Our government mandating the auto industry to build EVs. We all know we don't have the infrastructure to support all EVs but the Global Elites don't care. They're lining their pockets and telling the world they are saving the planet when in fact they are doing the opposite. China has the largest coal plant in the world and they are not reducing carbon emissions. The mining around the world to extract minerals for batteries is destroying the ecosystem, and you need fossil fuels to run the electric infrastructure. Nothing is going to change until the Republicans take over the House and Senate in Nov. and we get back to producing fossil fuels and becoming energy independent again. You Democrats that will give me a thumbs down, wake up and tell your party to change your energy policies that work for the American people, not the Global Elite.

  • Get use to this type of news... More small businesses will be going under in 4th qtr and into 2023 if this economy and supply chain does not get fixed. Big Corporations will lay-off in 4 qtr as well, due to the market plunges we've seen in the last 9 months. called recession.... There are NO plans from the WH to pull up our pants to get us back on track. Nothing but throwing blame, excuses, or just plain lies. What is their plan....

    Good luck on your next endeavors!