Chrysler Appeals Plastech Ruling
When a bankruptcy court judge ruled that Chrysler could not strip bankrupt supplier Plastech of its proprietary tooling, it looked like the two were stuck with each other. And yet, a surprisingly short extension to their interim supply agreement signaled more conflict ahead… and here it comes. The latest supply contract is set to expire at midnight on Monday. The Detroit News reports that rather than extend it again, Chrysler will appeal the ruling and try once more to remove their equipment from the Plastech plant. In their court paper, ChryCo's lawyers postulate that "the court's decision may have significant implications for the way automakers and their suppliers do business in the future." True dat. And if Chrysler's appeal fails? Industry watchers say it could put Detroit's suppliers at a huge advantage over their customers… and potentially trigger another wave of supplier bankruptcies.