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DETROIT - Chrysler LLC has closed two assembly plants and may be forced to shutter the rest of its global assembly operations within a short time due to a dispute with supplier Plastech Engineered Products Inc, which filed for bankruptcy court protection on Friday.
The US automaker, which terminated all its contracts with Plastech on Friday due to the supplier's "ongoing financial struggles," said in documents filed with the US Bankruptcy Court in the Eastern District of Michigan that it might be forced to quickly close its 12 assembly plants around the world because the supplier is no longer shipping parts to the Chrysler plants. The plants operate on a "just-in-time" basis, where parts are shipped as needed.
"Even a short term interruption ... will inevitably lead to the shutdown of more production lines at Chrysler," the automaker said in its objection filed on Saturday.
Chrysler has asked the court for "immediate relief" to allow it to take its tooling equipment from the Plastech plants so it can be shipped to another supplier.
Plastech provides Chrysler with hundreds of parts, including door panels, floor consoles and engine covers.
Chrysler officials were not immediately available to comment.
- REUTERS
