Mont. governor says General Motors will return to bargaining table with Stillwater Mining Co.

Mont. governor says GM-Stillwater talks to resume

BILLINGS, Mont. — General Motors Co. has agreed under political pressure to hold talks with a Montana mining company recently dropped as a supplier, but the automaker made no promises that a new deal could be forged.

GM canceled its precious metals contract with Columbus-based Stillwater Mining Co. last month as part of a government-backed bankruptcy reorganization. The Detroit automaker is now 61 percent owned by American taxpayers after receiving billions of dollars in federal loans.

The cancellation brought a harsh backlash from Montana Gov. Brian Schweitzer and members of the state’s congressional delegation, who criticized GM for retaining contracts with two overseas suppliers in Russia and South Africa.

Schweitzer said Thursday that he had a telephone conversation with GM CEO Fritz Henderson, who said new talks with Stillwater would begin next week.

As a result, the Democratic governor said he will again drive his Chevrolet pickup, which he parked when the Stillwater contract was dropped.

GM spokesman Dan Flores confirmed that a meeting had been scheduled for Aug. 13 in the Detroit area between GM Vice President Robert Socia and Stillwater CEO Frank McAllister.

When asked about the chances of a new deal being worked out, Flores said the company had no additional comment.

GM also buys precious metals such as palladium from a third supplier in Pennsylvania. The metals are used in catalytic converters to control vehicle exhaust.

Stillwater employs more than 1,300 people and already went through a round of layoffs, cutting about 300 workers after platinum and palladium prices plummeted. The company’s GM contract accounted for about 12 percent of its 2008 revenues.

Stillwater this week reported a loss of $7.4 million on revenue of $181 million for the first six months of 2009. That compares with a profit of $19.1 million on $420 million of revenue during the same period last year.

Stillwater shares fell 29 cents, or 4.3 percent, to $6.54 in afternoon trading in New York on Thursday.