Friday, February 8, 2008

Chrysler plants resume full production after supplier dispute

Business Reporter

Full production at two Chrysler Canada assembly plants resumed yesterday after temporary settlement of a dispute with a U.S. parts supplier under court protection.

The company had cut each shift by about four hours at the Brampton and Windsor plants. The U.S. parent cut four similar operations in the United States on Monday because of a halt in parts shipments from Plastech Engineered Products Inc.

But Chrysler spokesperson Ed Saenz said full production started again following an agreement between the two companies to assure deliveries of parts such as door panels until Feb.15.

The dispute affected about 9,000 workers at the two Ontario plants and reduced production by several hundred vehicles over two days.

Plastech, which is based in the Detroit area, said it sought and gained bankruptcy court protection in the U.S. last week to stop Chrysler from taking tooling at its parts plants. Chrysler owns the tooling but Plastech is challenging any removal.

Plastech has 35 operations and about 7,300 employees in the U.S. They make hundreds of parts ranging from floor consoles to grill panels and engine covers.

The company has one plant in Leamington, Ont., that employs more than 300 people.

No comments: