It looks like Chrysler won't have to idle its operations for a week to transfer over tooling from Plastech plants to its own. Judge Phillip Shefferly decided to deny Chrysler's motion to seize tools and transfer assembly operations to another supplier. There's been no comment from Chrysler's PR people yet, but we'll update this post as more information becomes available.
The Chrysler/Plastech saga is coming to a head (again) this week, when a court ruling tomorrow determines whether or not the automaker can take the tooling it (supposedly) owns from Plastech's production centers. Chrysler already has a few other suppliers lined-up to take over the production of molded parts from Plastech, but if Chrysler wins on Tuesday, it plans to shut down all of its production centers for a week so it can move tooling equipment from Plastech to another supplier. Plastech wil
It looks as though production will continue at the four idled Pastech plants, thwarting the possibility that Chrysler would have to halt all of its assembly operations. Plastech and the Pentastar peeps were able to reach an agreement earlier today that allows production to resume during the second shift today.
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