More production problems @ Chrysler

[sniper226]

Ah, more delays, higher pricing etc....
Can't wait till the 6th for hopefully some good news for a change.

Source: http://www.autoblog.com/2008/02/04/c...goes-bankrupt/

Chrysler idles four plants after supplier goes bankrupt

Posted Feb 4th 2008 3:05PM by Jonathon Ramsey
Filed under: Plants/Manufacturing, Chrysler
UPDATE: Automotive News is reporting that all 14 of Chrysler's manufacturing plants could be shut down to the Chapter 11 bankruptcy filing of ex-supplier Plastech.


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]

[Cuda340]

Chrysler purchased 5 families of plastic components from Plastech.

I hope they find a new supplier quickly to prevent any production delays.

I have heard, however, that the Brampton factory that will be making the Challenger, is not faced with a shut-down or idling of workers.

[sniper226]

Chrysler, Plastech resolve dispute

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.

There's no word on whether or not the two companies reached an agreement about who owns the manufacturing equipment, something that's likely to be held up in court.

Source: USAToday

[JayC]

Thats good news at least.

[Rambit]

That was a short term deal. I guess it's not over - http://www.detnews.com/apps/pbcs.dll...TO01/802070361

Rambit