AFSCME 3357-HOF'S BLOG

Supplier Bankruptcy Shuts Down 4 Chrysler Plants

Multiple sources report that automoative supplier Plastech, Engineered Products Inc. has filed Chapter 11 bankruptcy, and has cut off supply to Chrysler Corporation. Supplies continue to Ford and General Motors. Plastech provides key interior bits for most of Chrysler's recent models. By strange coincidence, the cars affected the ones that I consider to be the worst in Chrysler's line up: the Sebring, Avenger, Nitro, Liberty, Caliber, Compass, Patriot, Durango and Aspen, collectively Chrysler's greatist [S]hits. (Actually, the Jeep Liberty is a big seller and big money-maker for the company -- why, I couldn't tell you.) Four factories producing these vehicles are currently shut down, including the Belvidere, Illinois plant that I like to call "Brocktoon". Other closed plants include Sterling Heights, Newark, and Toledo. No word yet on when the plants will reopen.

I'm wondering if Chrysler's contract with the UAW contains an escape clause for shut-downs caused by suppliers? In that case, it would be an act of brilliance to identify an expendible supplier that supplies only plants that you want to close, stop paying the supplier, and play victim when you have to shut down the plants that you wanted to shut down anyway.

See Detroit Free Press (freep.com)