Chrysler, Plastech Ink Fourth Interim Parts-Supply Agreement

Last month, Chrysler terminated its agreements with Plastech over substandard performance and tried to seize tooling from the Tier 1 supplier.

Chrysler LLC enters into a fourth interim agreement with bankrupt parts-supplier Plastech Engineered Products Inc.

The agreement continues the production of component parts at Plastech for Chrysler vehicle programs through April 2. A third interim agreement expired March 17.

Last month, Chrysler terminated its agreements with Plastech over substandard performance and tried to seize tooling from the Tier 1 supplier. Plastech filed for Chapter 11 protection, which triggered a stay and prevented Chrysler from transferring the work to alternate suppliers.

Plastech supplies parts for more than half of Chrysler’s products.

General Motors Corp. filed a request with the bankruptcy court last week to recover tooling from Plastech if it cannot fulfill supply agreements. Plastech provides parts to GM’s fullsize pickup and SUV programs.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish