Feb 4th, 2008 by RJ Menezes
Chrysler is in a bit of a pickle. Ok, it’s more than a pickle, it’s a catastrophe. A problem that could literally shut down the brand on all fronts.
You see, Chrysler’s main supplier of plastic goods, Plastech, has filed for Chapter 11 bankruptcy. The company supplied all of Chrysler’s model line-up with interior plastic parts. Dashboard, trim, and any other plastic related components were all manufactured by Plastech.
The announcement threatens to halt Chrysler LLC’s production at its 14 assembly plants, the automaker says in court papers. Citing a parts shortage, Chrysler today said it temporarily closed four assembly plants and canceled a shift at a fifth plant after Plastech filed for Chapter 11 protection.
The parts disruption soon could halt Chrysler’s production of 2.3 million vehicles a year, according to documents filed by Chrysler in U.S. Bankruptcy Court. Chrysler terminated its contracts with Plastech early on Friday. Plastech had filed for Chapter 11 protection that evening. ” They have stopped shipping parts,” Chrysler spokesman Kevin Frazier said.
Ouch, this is the last thing Chrysler needs. With a major new force in power of the dieing company, it is a fatal blow to their restructuring plans. Let’s hope, for the millions of consumers stuck with their product, that they get this resolved and quick. Chrysler really can’t afford another problem like this. The clock is ticking…