Following a supplier dispute that forced Chrysler to shut down two Canadian production facilities, a Canadian court has ruled the troubled supplier must give its tooling and machinery back to Chrysler. The supplier must also give its equipment back to General Motors, although GM never experienced any production delays because of the dispute.
The supplier dispute causes a parts shortage, forcing Chrysler to close its Windsor plant on Wednesday and its Brampton plant on Thursday. Chrysler’s Windsor plant is responsible for producing the Dodge Grand Caravan , Chrysler Town and Country and the Volkswagen Routan while its Brampton plant makes the Dodge Charger , Challenger and Chrysler 300 .
According to The Detroit News, Transcast Precision Inc., the supplier responsible for the parts shortage, told both Chrysler and GM that it needed to significantly raise its prices or it would face bankruptcy.
To prevent any further production disruptions, Chrysler will temporarily move Transcast’s parts production in-house at its Etobicoke, Ontario stamping plant. GM says it is currently looking for another supplier to take over Transcast’s production.
