UPDATE: Chrysler Pulling Equipment From Supplier; Idles 2nd Plant
03 April 2009 - 12:13AM
Dow Jones News
Chrysler LLC is in the midst of pulling its equipment from a
Canadian parts maker after the auto maker was forced to idle a
second assembly plant Thursday due over a shipment problem.
The auto maker won approval from the Superior Court in Ontario
to begin removing its equipment from an engine and transmission
bracket making plant owned by Trans Cast Precision Inc.
Chrysler idled its Brampton, Ont., assembly plant Thursday due
to the bracket shortage, Chrysler spokesman Dave Elshoff said. The
factory assembles Dodge Challengers and Chargers. A day earlier,
Chrysler temporarily stopped production at its Windsor minivan
assembly plant and warned other North American factories could be
impacted.
The problem centers on a payment dispute between Trans Cast and
Chrysler in which Trans Cast claims it is owed money, according to
union officials who asked not to be identified because they don't
speak for the companies. Trans Cast also attempted to initiate a
price increase, these people said.
Chrysler now plans to move production to a company-owned casting
plant in Etobicoke, Ont. Auto makers traditionally own the
equipment auto suppliers use in their plants to make their
exclusive parts.
This is the second time in the past 14 months that a dispute has
led Chrysler to pull its work and tooling from a supplier. Last
year, Chrysler ended all ties with Plastech Engineered Products
Inc. in Dearborn, Mich., after the company attempted to raise
prices. The decision helped push Plastech into bankruptcy.
-By Jeff Bennett, Dow Jones Newswires; (248) 204-5542;
jeff.bennett@dowjones.com