atlxpat
02-04-2008, 11:33 PM
Earlier today the news of Plastech’s bankruptcy hit the streets and so did Chrysler’s idling of four plants as a result of the lost supply. Court documents filed by Chrysler in that action indicate the supplier’s closure could put all of the maker’s 14 assembly plants in danger.
Plastech supplied approximately 500 types of trim to Chrysler, ranging from door panels to engine covers. Without those parts, or a readily available alternate source, Chrysler will be forced to stop production at all of its plants and lay off the workers that staff them. The idling and layoffs would continue until Chrysler could find an alternate source - in other words, a potentially indefinite time. And with the automaker already in tricky financial straits, such downtime could prove disastrous.
In order to prevent the nightmare scenario of cascading plant closures, Chrysler is petitioning the U.S. Bankruptcy Court in charge of the proceedings to allow it to take possession of the tooling in Plastech’s factories so it can continue to produce the pieces it needs. Plastech obviously is opposed to the motion, as the tooling is a valuable business asset and as such is protected by bankruptcy law, reports Automotive News.
Ford and GM also use Plastech to supply parts, although neither maker’s operations have yet been affected by the bankruptcy.
http://www.motorauthority.com/news/industry/plastech-bankruptcy-the-beginning-of-the-end-for-chrysler/
Plastech supplied approximately 500 types of trim to Chrysler, ranging from door panels to engine covers. Without those parts, or a readily available alternate source, Chrysler will be forced to stop production at all of its plants and lay off the workers that staff them. The idling and layoffs would continue until Chrysler could find an alternate source - in other words, a potentially indefinite time. And with the automaker already in tricky financial straits, such downtime could prove disastrous.
In order to prevent the nightmare scenario of cascading plant closures, Chrysler is petitioning the U.S. Bankruptcy Court in charge of the proceedings to allow it to take possession of the tooling in Plastech’s factories so it can continue to produce the pieces it needs. Plastech obviously is opposed to the motion, as the tooling is a valuable business asset and as such is protected by bankruptcy law, reports Automotive News.
Ford and GM also use Plastech to supply parts, although neither maker’s operations have yet been affected by the bankruptcy.
http://www.motorauthority.com/news/industry/plastech-bankruptcy-the-beginning-of-the-end-for-chrysler/