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‘Interim’ Plastech Deal Jump-Starts Halted Chrysler Production

Plastech agrees to resume shipping components through Feb. 15, Chrysler says.

Chrysler LLC has reached a deal with Plastech Engineered Products Inc. that will see the bankrupt supplier resume shipments of key components through Feb. 15, the auto maker says.

Shipping was interrupted Monday after Chrysler tore up its contract with the troubled supplier and launched litigation to retrieve its tooling. The resulting stoppage immediately halted production at five Chrysler plants and threatened the auto maker’s entire North American assembly network as the dispute wore on.

An “interim production agreement,” reached this morning, will restore shipment of interior, exterior and powertrain plastic components featured in key Chrysler products. These range from its redesigned-for-’08 minivans to its high-margin Dodge Ram pickups to the all-new Dodge Journey cross/utility vehicle currently in launch mode at the auto maker’s plant in Toluca, Mexico.

In a statement, Chrysler says production at the five affected plants will “immediately resume” with the start of today’s second shift. The plants are:

  • Belvidere Assembly Plant, Rockford, IL – home to the Dodge Caliber C-car and Jeep Patriot and Compass CUVs.
  • Newark Assembly Plant, Newark, DE – Dodge Durango and Chrysler Aspen SUVs.
  • Sterling Heights Assembly Plant, Sterling Heights, MI – Dodge Avenger and Chrysler Sebring midsize cars, Sebring convertible.
  • Toledo North Assembly Plant, Toledo, OH – Dodge Nitro and Jeep Liberty SUVs.
  • Toledo Supplier Park, Toledo, OH – Jeep Wrangler SUV.

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