Plastech Cuts a Deal With Chrysler: SNAFU

Robert Farago
by Robert Farago

It looks like Chrysler got out the old checkbook and paid Plastech some money to ship the damn parts already. USA Today reports nothing more than the fact that the two companies are doing business again, which should result in a production restart at Chrysler's four idled factories and two de-accelerated plants within a few days. Automotive News [sub] says it's strictly an interim affair; the deal only runs through Feb. 15. So the fat lady ain't singing. More accurately, the fightin's in 'rounds. Just as Delphi bedeviled GM for years, this dispute will go through several more permutations before it's done. Even if you don't factor in lawyer's fees, this little "spat" has already cost Chrysler millions. More importantly, one wonders what effect Plastech's insurrection's had on Chrysler's other suppliers. Will they be more willing to go to the mat when Chrysler comes calling? Count on it. Chrysler's ability to do business with its suppliers just got a whole lot tougher.

Robert Farago
Robert Farago

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  • SexCpotatoes SexCpotatoes on Feb 05, 2008

    Getting paid 90+ days later seems to work for doctors and the insurance companies. Hell, my dental insurance doesn't pay for over 6 months and 2 submissions for cleaning and exam work, the fuckers. My dentist has billed me twice because they got no reply and had to resubmit to he insurance.

  • Ryan Knuckles Ryan Knuckles on Feb 05, 2008

    Rix: Anyone that does business with Wal-mart has atleast that much delay in payment. Its hard to pity any company that follows this practice.

  • GRAMMY GRAMMY on Feb 05, 2008

    WELL CHRYSLER YOU THINK IT MIGHT BE TIME TO PAY YOUR BILL???????? PLASTECH IS NOT LOOKING FOR A HAND OUT FROM YOU!!! IT MIGHT BE NICE IF YOU PAID FOR ITEMS YOU GET LIKE THE REST OF US HAVE TO DO.

  • Mykeliam Mykeliam on Feb 06, 2008

    Hmmmm..... I wonder if the shutdown helped to cut the excess capacity that Chrysler has sitting on lots any where??

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