I don’t believe Chrysler dealer are suffering from shortage of inventory.

Too funny autonut…but too true.

They wouldn’t be able to put interiors into their cars. Har har har, in reality this kinda sucks for them. You hate to hear stuff like this. And, gotta get ready to get off their ass about interiors because they’re making good efforts. (Going by the new Ram)

Truly an American Idel.

I cant think of 1 Chrysler product i would buy.

Idel? Try idle, please.

Deanster—I read the article twice: what did LLN spell incorrectly?

Looks like Chrysler is going through even rougher troubles. Chrysler needs a new leader, like Lee Iacocca (by the way, his book, “Where have all the leaders gone?” is a great example of what we truly need, and what I’m deep heartedly talking about). Chrysler needs someone not only with fresh ideas, but someone who will take charge and give orders without regret. Chrysler is treading softly as it currently stands, their business leaders are just popping their jaws left and right. I faithfully believe that Chrysler will be the first of the Big Three to vanish, and what a sad day that will be.

Mattk… You wanna work for LLN? Just a joke, but couldn’t help but notice you do deal in journalism.

The last few articles have had terrible spelling, it’s gotten to the point where I can’t understand half of their articles… Please LLN, proof read, get a new writer, do something to help this issue.

Scott Kempton-

Plastech filed for Chapter 11 Bankruptcy earlier this month and stopped supplying Chrysler with product

Simple little mistake, but it happens very often…

jayjc08: never would have said this 6 months ago, but don’t discount Nardelli. I mentioned on the Jeep/Mopar thread how he gave Penske a million for winning Daytona. If you try to look past the redneckian element of NASCAR, that was a hell of a gesture- ‘win on Sunday, sell on Monday’. Maybe I’m just gullible, but I think the guy almost cares.

Beware the Idels of March!

This is bad news for Chrysler’s already sub par interiors. Simply move the tools to another supplier and they will instantly make quality parts… ha, hardly. Management will be screaming to build vehicles and the consumer will end up with squeaks, rattles, and horrible gap/flush. Another reason not to buy a Chrysler.

hmmmmmm motoracer nobody buys gm in the worlds biggest market (china)…….something for you to think about

400horseSS: Buick is among the most prestiguous brands in China. Go figure.

Now *this* is a bullsh!t ruling! I don’t care what the reason is, you can’t f*ck over a business like this! Stupid rulings like these is what’s causing the Domestics so much trouble.

yeah GM is selling the most vehicles in China actually. Sad isn’t it. Well on the other hand if it wasn’t for the Chinese market Buick would nearly be dead. I also happen to like the designs of Buick that are coming out of China.

Well supply issues like these definitely aren’t helping Chrysler. Even if the dealers’ inventory is in excess, even in halting production there’s still overhead costs and employee salaries that have to be accounted for.

Nobody said this was going to be easy. Wonder if Daimler is covering part of the court costs.

If the tooling was purchased by Chrysler to begin with, then I don’t see the rationale behind the decision. However if the vendor paid for the tooling under the premise of getting its money back over 5 years (or however long), then the ruling makes sense, and Chrysler would only be entitled to the tooling to the extent that the vendor is willing and able to sell.

Since, however, the vendor is in Chapter 11, the all assets of the vendor (including the tooling) are very likely frozen pending an appraisal and a public auction or private bidding, and as such Chrysler can kiss it goodbye because that could take a while.

Chapter 11 is for reorganization, not liquidation (which is Chapter 7)! Nothing is sold and the tooling equipment is going to be retained by Plastech as part of its plan to “reorganize.” That may be the only business Plastech does and if the tooling equipment is taken away by Chrysler, you might as well kill Plastech! If you kill it, Plastech’s creditors will not get hardly anything, so the Bankruptcy Court will want to keep Plastech solvent. The ruling makes sense, for now.

Good for dealers, good for chyrsler. They will both be saving money on this deal. And they can blame someone else. Win, win.

My information is that Plastech filed for chapter 11 AFTER Chrysler decided to move their buisness from Plastech.It seems that Plastech is only reacting to losing all their buisness which would kill them.

Anyone know who actually OWNS the tooling? Is it Chrysler’s legal property? If so then it is sick that then can’t take it, but if Plastech paid for it then screw Chrysler (unless contractually they are allowed to cancel and buy at book-residual without notice or consultation).

It would make sense to assume that, due to the ruling, Plastech probably owns the tooling.

Because of it’s Chapter 11 Bankruptcy announced the first of this month, Chrysler cannot repossess it’s tooling because of Plastechs Bankruptcy policy.

But you know why they filed Chapter 11? Because, otherwise Chrysler would have been able to remove it’s machinery earlier this month, and this has prevented them from doing so. I would be furious as Nardelli.

Sharpie- Chrysler owns the tooling. Aside from that, Chrysler is the smallest of 4 companies using plastech.

Ricardohead- Chrysler owns the tooling. They can’t take it because of their bankruptcy policy.

How does this make sense? Chrysler is being FORCED by a COURT to stick with a supplier that CAN’T SUPPLY??

This is why the USA is going to collapse…we’re doing it to ourselves with our idiotic legal systems.

CA36GTP- Law makers would say:

“I understand what your saying, but Plastech would go bankrupt without Chrysler’s contract”.

Which is total bull****.

The way I view it, if they can’t supply products that are cutting edge, or atleast reasonable then they shouldn’t be kept afloat because they “have the right to be a company”. Lots of the USA has become like that, with homosexuals, with companies, with criminals, with bankruptcy, with… Hell, I don’t know the difference between a bankrupt company any more!

CA36CTP, it may not be that Plastech “can’t supply” but that it needed to hold off on its creditors, and to stop these creditors from stop supplying them the raw materials they need. Chrysler is one of Plastech’s client and probably was threatening to take its business elsewhere. So sure Plastech filed Chapter 11 as a reaction to that, but it is more to keep the supply of raw materials coming. This has nothing to deal with the actual manufacturing process. The operation can be very smooth, but maybe there was mismanagement by the exec (may not even be the current one). You might not care about jobs because you don’t work there, but the last thing this country needs is higher unemployment rate.

When Plastech file for Chapter 11, it will have to devise a plan (usually 5 years) and it will have to emerge from it. They don’t stay bankrupt forever. If they fail, the company folds. This is the last resort, not some tactic to screw Chrysler as some of you think. Chrysler is unfortunately caught in between through no fault of its own. Life’s a biotch!

jayjc08, Chapter 11 IS bankruptcy. Plastech is bankrupt whether it is Chapter 11 or 7. Again, you only focus on the supply and product aspect. Bankruptcy may have nothing to do with “cutting edge” product. Plastech may be profitable with huge amount of account receivables, but it may not have the cash to meet short term obligations and its suppliers are threatening to stop giving them raw materials if they don’t pay within a week. This happens more often than you think, especially to start-up companies. Chapter 11 is a way to keep the factory open. This has nothing to do with Chrysler at all. And what’s with those BS about rights that has nothing to do with bankruptcy? Bankruptcy is not a right, but a privilege. If you do some fraudulent stuff to defraud the court in filing, they can just dismiss your case. Thus it is NOT a right at all.

sharpie- I never said they were out/not in or of bankruptcy. But they only announced for Chapter 11 bankruptcy only a day after Chrysler made plans to pull their machinery out of the workforce and begin to move manufacturing, partly due to Plastechs financial condition and partly because they have been receiving sub par products for some time, at a higher expense.

Another thing you might be missing is Chrysler had to shut down 4 plants earlier this month because of an ongoing dispute between the twos management, which ended into the temporary laying off of 10,500 workers and Plastech ending up with no part shipments for 4 days. Chrysler currently has management on the tool floors right now, and have had them in the building for the past week trying to reclaim Chrysler’s property.

My point is, Plastech is belly up in bankruptcy, and management. Part of that is amid oil prices rising, and much of it is amid angry, poor management and communication. Is it all Plastechs fault? No, you could also point to rising oil prices and inflation, but Plastechs already lost a fair amount of money because they can’t quit their endless bickering. They have had problems with almost ALL their other suppliers at the current moment too.

But despite this obviously being a company that needs a fair amount of help, financially and speaking of the corporation, and that there are numerous other suppliers with not only the newfound capacity, eagerness to make good products, but the need and management to do so, they rule that they can’t move the equipment to save the company! I only compared it to those other issues because it’s currently costing billions to house prisoners on deathrow, it’s something expensive that needs to go! Not to sound inhuman, but get real here!

Part of our inflation issue is due to the same thing- instead of going straight to the problem, they print out more money to “jump start” the economy! How do you think they decrease interest rates? Let alone, every Presidential Candidate right now is proposing the same ****, aside from Ron Paul who although is the only guy I would even consider voting for atcm, unfortunately has little chance in Presidency, to print out more money to keep companies like this afloat, AND higher congressional budgets! Generally speaking we don’t need new companies; we need companies and politicians willing to make decisions, not half ass ones!