Chrysler Finds Support from Ford, GM and JCI over Plastech Dispute
In its on going dispute with tooling supplier Plastech Engineered Products Inc, Chrysler has been backed by Ford Motor Co, General Motors Corp. and Johnson Controls Inc. This was stated by the lawyers of the three supporting firms at the U.S. Bankruptcy court.
Chrysler has stated in court that Plastech has had significant financial and operational difficulties over the last year. In addition, there have been more quality discrepancies than those faced by the average supplier. Plastech has also needed continual financial assistance and were facing problems paying suppliers and lenders, and has been bailed out by Chrysler on two occasions.
Chrysler has therefore cancelled its contracts with Plastech, as a result of which Plastech has stopped supplying parts to Chrysler. This has resulted in a shut down of Chrysler plants for at least a day.
An attorney representing GM stated that GM completely supported Chrysler’s position and its right to take possession.
Plastech, on the other hand is worried that if Chrysler pulls out of tooling, Ford, GM and Johnson Controls will follow suit, leaving Plastech unable to carry out any business.
Other Aspects:
Discussion Area - Leave a Comment