Chrysler reaches interim agreement with vendor Plastech

Auburn Hills: At approximately 12 p.m. on Tuesday, 5 February, 2008, Chrysler reached an interim production agreement with Plastech Engineered Products, Inc., which will restore the shipment of interior, exterior and powertrain plastic components through 15 February, 2008.

In a press statement on its website, the company said its interim agreement ensures the supply of parts upto 15 February 2008, from Plastech Engineered Products Inc., its vendor, who filed for Chapter 11 bankruptcy following the cancellation of contracts by Chrysler.

The two are locked in litigation; with Chrysler aiming to recover mouldings installed at Plastech, which it claims belongs to it. Plastech says that those mouldings are connected to production systems that also produce parts for other of its customers, including Ford, General Motors, and Toyota. US bankruptcy Judge Philip Shefferly had encouraged both sides to continue with talks and reconvene on Tuesday, 12 February, a day before a formal hearing on 13 February.

According to Chrysler's statement, all impacted manufacturing operations, currently down, will immediately resume production with second shift employees to report as normally scheduled. Employees may also call their respective plant hot-line number for further direction. Affected operations include:

Belvidere Assembly Plant - Rockford, IL
Newark Assembly Plant - Newark, DE
Sterling Heights Assembly Plant - Sterling Heights, MI
Toledo North Assembly Plant - Toledo, OH
Toledo Supplier Park - Toledo, OH