A Chrysler executive reportedly testified in the court about the depth of the financial and operational troubles that have plagued Plastech for at least a year. Plastech, which filed for Chapter 11 protection on 1 February, is trying to protect the tooling that Chrysler wants and, last week, with Chrysler trying to sever its business, stopped supplying parts to the automaker, causing the shutdown, Automotive News said. Plastech reportedly contends that if Chrysler removes its tooling, Ford, GM and Johnson Controls will follow, rendering the supplier unable to do business.
Lord, Blue Water Plastics CEO, reportedly cited high development costs for future customer production (for which Blue Water won’t get paid till the customers start production) and doubled raw material costs among the reasons for going into Chapter 11. He told : “If you look at the industry, a huge portion of the industry is in distress, and there are elements that are very dysfunctional right now.”