Plastech To Supply Chrysler "Indefinitely"

plastech to supply chrysler indefinitely

Plastech may not have done so well in the plastics molding business lately, but it sure knows how to play the doormat with aplomb. In a touchingly "stand-by-your-man" moment, Plastech General Counsel Kelvin Scott confirmed yesterday that the bankrupt firm would continue supplying Chrysler with parts "indefinitely." This announcement comes despite the fact that the Pentastarred lawyers are currently working on their second attempt to legally extricate the very tooling Plastech uses to produce Chrysler parts. So why is Plastech eliminating the threat of work stoppages at Chrysler plants and thereby losing all of its negotiation leverage? Is it playing nice for Judge Shefferly, who has already staved-off round one of Chrysler's legal predation? Our theory? Plastech knows it's products are of such poor quality that the best way to hurt Chrysler is to keep 'em rolling into their plants. Just kidding. I think.

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  • Landcrusher Landcrusher on Mar 05, 2008

    In order to understand a member of the bar, you have to BE a member of the bar. What did he NOT say? What parts of what he said are out of his control? What parts of what he said are actionable? Could he be in any way harmed if he anything he said is false? Would he be liable if he promised anything he could not deliver? Intentionally does not deliver? etc. IOW. He said diddly.

  • ScottGSO ScottGSO on Mar 05, 2008

    "So why is Plastech eliminating the threat of work stoppages at Chrysler plants and thereby losing all of its negotiation leverage? Is it playing nice for Judge Shefferly, who has already staved-off round one of Chrysler's legal predation?" The whole point of Chrysler's motion in the BR proceeding was to get back their tools. Plastech fought it saying we can't reorganize without the tools, which can only be used to supply Chysler. If Plastech says to Chrysler "we're not going to supply you anymore" or even hints at it, the rationale for preventing Chrysler to grab back their tools disappears and Chrysler gets want they wanted in the first place. IOW, Plastech cannot play hardball with Chrysler without the BR judge lifting the stay and allowing Chrysler to get their tools back.

  • BigOldChryslers BigOldChryslers on Mar 05, 2008

    Indefinitely means for an unknown amount of time, not an infinite amount of time. I could see the judge ruling more in Plastech's favor (ie: they get to keep the tooling) if they act in good faith towards Chrysler.

  • Dougw Dougw on Mar 06, 2008

    It would do everybody good to see the AutolineDetroit segment from last week on plastics surfacing, and hear what the Chrysler interiors fellow says about the current state-of-the art of making lovable interior surfaces. It is quite eye opening and fascinating stuff. The bottom line is that it is all about incredibly intricate etching of the die surfaces. If I can say it here, they have a website where you can see the archived video.

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