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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