New Chrysler NSFWd Without Old Tools

Bertel Schmitt
by Bertel Schmitt

Chrysler Group LLC, the company built out of the alleged morsels of the old Chrysler has a problem: In order to make new cars it needs to have the old tools. A lot of those tools are at parts makers who are sitting on unpaid bills, old bankrupt Chrysler stuck them with. Payback for unpaid bills being a bitch, the parts makers don’t want to give up the tools.

New Chrysler may need mediation and extra money “to resolve disputes over access to tools, Frank Oswald, a Chrysler lawyer from Togut, Segal & Segal LLP, told U.S. Bankruptcy Judge Arthur Gonzalez in Manhattan,” reports Bloomberg.

“We don’t want to have a situation where, after rushing to get the sale closed in 42 days, Newco is unable to start up production because we don’t have necessary parts,” Oswald said.

There are about 70 unresolved cases. Even one missing part can hold up production for a long time. Oswald said lawsuits may need to be filed “to the extent that there are recalcitrant suppliers.” Good luck with that, that can take a while.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href=""> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href=""> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Jkumpire Jkumpire on Jun 24, 2009

    NEW US GOVERNMENT FUND RAISING TOOLS PIN THE TAIL ON THE CHRYSLER DO IT YOURSELF CAR KITS Yes, now you can own a new car and practice a great hobby at the same time. For a measly $25,000, you can buy your own "POS Taxpayer Car Kit." It's all ready to run, at least for a while, all you have to do is sift through junkyards, police impound lots, government fleet centers, auto parts stores, and Vito's Loan Emporium, to find the right 10 or 12 missing parts needed to make that baby hum. Just think, ride your bicycle for a weekend or two, hunting for those special parts, then using your US Government How To Manual, you can disassemble and reassemble your great new car in your garage, or abandoned GM or Chrysler dealership. After you complete this task, then fill out the special application sheet, and be part of the new government lottery to seat two independent board members on PTFOA! (no additional purchase necessary, but union membership required). Get yours today!

  • Greenb1ood Greenb1ood on Jun 24, 2009
    @ NulloModo There are certain instances where suppliers make the same basic product for all customers worldwide with minimal tweaks (add'l bracket, different fastener) that creates huge economies of scale and creates an environment where each automaker isn't paying engineers to derive their own particular widget. Lower costs for everyone! Where the Detroit Bunch fall flat on their faces is by not utilizing these one-time engineered, globally sold parts because they want to have their own nifty little spec or because they don't plan the correct amount of space to package the part. So they end up paying a supplier engineer to create a new part from a blank page with their specifications and have a OE engineer preside over the whole event to essentially check the other guy's work. The most hilarious/sad result is when two different parts are designed and tooled separately by two separate suppliers, but look so similar due to the 'specifications' that the customer thinks they just got a Cobalt steering wheel on their Caddy. The theory is sound, the error is how it's been put into practice.
  • Ronnie Schreiber Ronnie Schreiber on Jun 24, 2009
    I am sure there are some economies of scale at work there, but nothing would stop Chrysler Parts and Tools LLC from also making parts and tools for other automakers and selling those at a markup, thereby giving Chrysler’s own vehicles an even better price point in the market. See Delphi and Visteon. That was their business model. Spinning off Ford and GM's part businesses was supposed to allow them to gain market share by selling to non-captive customers.
  • Pnnyj Pnnyj on Jun 24, 2009

    The New Chrysler: Some assembly required, batteries not included.