Chrysler Willing to Shutdown Plants to Move Tooling Equipment
Chrysler LLC is still in court battling it out with Plastech over tooling in which Chrysler claims ownership over. In fact, Chrysler already has suppliers lined-up to take Plastech’s business (Decoma unit of Magna, Continental Plastics, Mayco Plastics).
If Chrysler wins in court tomorrow, it is prepared to shutdown all of its assembly plants for a week while it moves the tooling equipment and gets its new suppliers online. Plastech’s work for Chrysler was the assemblies and molded parts, such as the center consoles and bumper fascias.
Plastech is contending that if the equipment is removed it will be unable to reorganize under Chapter 11 bankruptcy protection.
+ Automotive News: Chrysler would shut to move Plastech work (sub req’d)
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[...] Chrysler had prepared to shut down its assembly plants for as long as a week, to remove the Plastech tooling, and transfer the supplier’s work to other companies. The automaker was barred from doing so under the reasoning that the Chapter 11 filing gives Plastech a “temporary window
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