Plastech Attorney Says Tentative Agreement Reached with Chrysler

By Chris Haak

02.05.2008

According to CNNMoney, Gregg Galardi, an attorney for Plastech told a Federal bankrutpcy judge this morinng that his client may have reached an interim production agreement with Chrysler.

On Monday, Judge Phillip Shefferly asked the parties to work out an agreement; if the Plastech attorney is correct, it could mean that production will resume soon at Chrysler’s idled plants.

The question of whether Chrysler may remove its tooling from the Plastech factories to install it in other suppliers’ facilities is still unresolved. Arguments on that question are scheduled for February 13. Chrysler argues that the tooling is its property and is needed for production of its vehicles, while Plastech says that it needs more time to make the transition.

An interim agreement is a necessity for Chrysler; just as the UAW strike last year would have cost them millions of dollars per day, ceasing production for any reason – including a supply shortage – would have the same effect.

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Author: Chris Haak

Chris is Autosavant's Managing Editor. He has a lifelong love of everything automotive, having grown up as the son of a car dealer. A married father of two sons, Chris is also in the process of indoctrinating them into the world of cars and trucks.

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1 Comment

  1. This is very good news! Real jobs that real people depend on are at stake!

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