TROY, Mich., Oct. 1 (UPI) -- Intermet Corp., a Troy, Mich.-based auto parts supplier to Ford, Chrysler, Delphi Corp. and other automakers, has filed for federal bankruptcy protection.
The 158-year-old company, which started as Columbus Iron Works, will continue to operate under Chapter 11 protection from creditors. The company did not announce any layoffs or plant closings as it prepares to restructure.
Intermet blamed its financial woes on a sharp jump in prices of steel, resin used to make plastic, and other raw materials, the Detroit News said.
The cost of rolled steel used by the metal caster to manufacture brakes and suspension components has risen 88 percent this year -- more than $24 million.
Intermet was under pressure from automotive companies to cut prices and faced rising costs for healthcare for its 6,000 employees.
Citation Corp., an Alabama-based supplier of cast metal auto parts, filed for Chapter 11 bankruptcy protection last week.