• Feb 4th 2008 at 3:05PM
  • 18

UPDATE: Automotive News Plastech supplied components like interior trim, engine covers, moldings, door panels, and floor consoles to Chrysler, Ford, GM, and Toyota. The company employed 7,600 people in the US and Canada, and had 2007 sales of $1.4 billion -- including a contract with Chrysler alone that was worth $200 million. Yet due to the rise in the cost of raw materials and lower consumer demand, the company, along with others like it in the past few years, was forced to declare bankruptcy last week.

Chrysler terminated its contract with Plastech last Friday, and is now forced to idle four plants and eliminate an entire shift at another plant while it secures a new supplier. The move sends 10,500 Chrysler employees home. Chrysler hasn't said when it expects those plants to be open again, but workers will find out from plant managers or notices in local media when it happens. So far, no other company supplied by Plastech has indicated it will be slowing down operations.

[Source: USA Today]



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    • 1 Second Ago
  • 18 Comments
      • 7 Years Ago
      I can't really blame anyone for not buying a Chrysler, so it's not a problem for me, blame Chrysler, their ENTIRE! line up is composed of garbage.
      • 7 Years Ago
      haha oops, still doesn't change what I think about toyota though
      • 7 Years Ago
      +1
      • 7 Years Ago
      Uhhh yea...
      Using the same machines, same dies, and the same plastics as per spec by Chrysler.

      • 7 Years Ago
      Maybe now Chrysler will have to turn to a supplyer with more quality materials....
        • 7 Years Ago
        Suppliers usually push OEMs for better quality materials. Its higher margin business plus the end product looks better which is better for their rep. In the end, they are at the mercy of the OEM bean counters so its not their fault.
      • 7 Years Ago
      Sign with whoever is making GM's interiors
      • 7 Years Ago
      Problems that drive Plastech to chapter 11:
      - No profit due to high material cost and low selling price.
      - Huge drop in GM,Chrysler and Ford's order due to low sale.

      How GM,Chrysler and Ford fixing this problem:
      Having new suppliers making parts at the same price with hope that these new suppliers make profit and do not run into the same problem.

      Although Plastech make parts for GM,Chrysler,Ford and Toyota however the tolerance from Toyota is lower (increased cost)and that make their quality car.
      • 7 Years Ago
      It almost seems as if it has nothing to do with Plastech going bankrupt. Given that other manufacturers are continuing. I think the Chrysler itself isn't moving as much product as they don't have a "hot" car on the lot.
      • 7 Years Ago
      "Plastech", with a name that clever how could they ever go wrong?
      • 7 Years Ago
      I live in a town that had a plastech plant, I have close friends and family who used to work their. With the plant closing the town I live in will pretty much have no quality jobs left. Thanks to all you dumb f***s who buy toyota's
        • 7 Years Ago
        i'm no fan of toyota but...you did read the part at the beginning of the article where it said toyota is one of the companies that buys product from them, right?
      • 7 Years Ago
      What? Tata's a HUGE company, much bigger than Chrysler. Tata is worth 22.8 Billion US$, Chrysler was sold to Cerebrus for 7.4 Billion US$
      • 7 Years Ago
      The Chrysler Death Watch continues....

      .....over to you RF.
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