Despite an ongoing dispute between plastic supplier Plastech and Chrysler , a court has ruled that Plastech can keep the tooling equipment it uses to make parts for Chrysler.
Plastech filed for Chapter 11 Bankruptcy earlier this month and stopped supplying Chrysler with product, causing the Michigan automaker to idle four plants.
The court’s decision prevents Chrysler — at least in the short term — from moving its tooling operations to other suppliers. A shift in suppliers would require Chrysler to hire several trucks and riggers, and would shut down production for at least four days as the new supplier came online. Chrysler officials say they are prepared halt production for up to a week.
A week shutdown wouldn’t impact Chrysler dealers as they currently have excess inventory.
