Plastech, Chrysler fight is complex

Automaker says money not sole reason for split

By JEWEL GOPWANI

FREE PRESS BUSINESS WRITER

It was more than financial issues that led Chrysler LLC to cancel its contracts with Dearborn-based Plastech Engineered Products Inc., the Auburn Hills automaker said during a hearing in which it is arguing to take back tools Plastech uses to make parts for Chrysler vehicles.

In U.S. Bankruptcy Court in Detroit on Wednesday, lawyers for Chrysler called a purchasing director and a consultant hired to monitor Plastech to dig into the details of the legal dispute that shut five Chrysler plants last week, and Plastech says, drove the supplier to file for Chapter 11 bankruptcy protection.

Those details involve quality issues, financial troubles and whether Chrysler was abiding by several agreements that laid out the companies' relationship.

Testimony on Wednesday also revealed that Plastech was in talks that would have allowed its largest customer Johnson Controls Inc. to buy the supplier.

Plastech's quality was below the automaker's standards, said Douglas Doran, Chrysler's director of interior procurement, during testimony Wednesday.

Chrysler three times had to take the unusual step of bringing in a third party to review the parts Plastech made to ensure their quality, he said.

Plastech declined to comment on the quality issue.

But in opening statements, the company's attorney Gregg Galardi argued that Chrysler didn't properly terminate its contracts, and disputes the basis for Chrysler's decision.

Before Plastech's bankruptcy filing Feb. 1, there were talks led by Plastech's largest customer, Johnson Controls, about bailing out the struggling supplier through either a restructuring or by having the Milwaukee company buy Plastech, said Marcus Hudson, a consultant at BBK, the firm Chrysler hired to monitor Plastech.

That deal would have cost Chrysler more than $100 million over four years, Doran said.

One of Chrysler's key arguments is that a financing deal reached among Plastech and its largest customers last year says Chrysler can take back its tooling.

Plastech's largest customers -- General Motors Corp., Ford Motor Co. and Johnson Controls Inc. -- supported that part of Chrysler's argument. They say that they were also given the right to take back tooling under the agreement.

The hearing is slated to continue Thursday.

Plastech's filing comes at a difficult time for plastics suppliers in the auto industry, as suppliers are squeezed by rising material prices, decreasing production and pressures to cut prices.

On Tuesday, Blue Water Automotive Systems, which makes interior and exterior plastic parts, filed for Chapter 11 protection.

2008 Dodge Challenger SRT8 - First Drive Review

IMAGES

Some things don’t really change. They just get faster.

CAR-n-DRIVER | February 2008

For anyone who came of age during the heyday of the unfettered big-cubic-inch American V-8, the feeling is deliciously familiar.

Stab the throttle, and there’s that rocket sled pressure across the shoulder blades as a 6.1-liter Hemi V-8 transmits its massive thrust to the pavement, provoking smoke and shrieking from the rear tires as they scrabble for grip.

The sounds and sensations after pushing the keyless-start button ignite memories of those thrilling days of yesteryear when an original Hemi V-8 lit up its Goodyear Polyglas rear tires and sent an original Challenger hurtling down the highway—or maybe Woodward Avenue—with a heady rush.

Whooma! Is that the ground trembling? Now, as then, the experience is seismic. Whooma! There’s almost nothing in the internal combustion inventory that can match the visceral experience that goes with exploiting the punch of a big ol’ American V-8.

And now, as then, a big V-8 can produce some pretty impressive acceleration numbers.

The Hemi Challenger we tested almost 40 years ago was able to smoke its way through the quarter-mile in 14.1 seconds at 103 mph on tires that were considered hot stuff back then but would be only slightly better than linoleum compared with the performance rubber available today.

The latter-day Challenger, with its Goodyear F1 Supercar tires (245/45-20 front, 255/45-20 rear) is expected to rumble to 60 mph in 4.9 seconds, with a quarter-mile time of 13.3 seconds. To follow the action, the car gets a performance display similar to the one in the Caliber SRT4 that measures 0-to-60, quarter-mile and g-force.

We must add here that we have yet to put a new Challenger through its paces at a test track, and don’t expect to do so until April.

Our experiences with a pre-production development mule were accumulated at the Texas Motorsports Ranch, about 14 miles west of Houston, experiences that were tempered by intermittent rain showers.

Rain and 425 horsepower on a twisty road circuit isn’t a great combination for max lap times or blistering acceleration, although we did learn that the chassis engineers have set the stability system threshold commendably high, and that the Goodyear F1s deliver surprisingly good grip on wet pavement. So our acceleration forecasts are based on our test of a Chrysler 300C SRT8 in June 2005.

Although the Challenger’s two-door sheetmetal is sexier than that of the 300C or Dodge Charger SRT8, the foundations—minus four inches of wheelbase—are essentially identical to those of the sedans.

This in turn adds up to hefty curb weights. The Dodge boys forecast 4150 pounds, which is just 62 pounds lighter than the 300C. With the same 6.1-liter Hemi V-8 (425 horsepower, 420 pound-feet of torque), the same five-speed automatic, and the same final drive, and the same tires, drag strip numbers figure to be pretty much the same, too.

Still, you might wonder why the smaller coupe—at 197.7 inches it’s 2.5 inches shorter than a Charger and almost an inch lower—is nearly as heavy as the sedan.

Trademark: New Yorker

Mark


(words only): NEW YORKER

Standard Character claim: Yes

Current Status: A request for the second extension of time to file a statement of use has been granted.

Date of Status: 2007-10-10

Filing Date: 2005-08-25

The Notice of Allowance Date is: 2006-08-22

Transformed into a National Application: No

Registration Date: (DATE NOT AVAILABLE)

Register: Principal

Law Office Assigned: LAW OFFICE 113

Attorney Assigned:
AMOS TANYA L Employee Location

Current Location: 700 -Intent To Use Section

Date In Location: 2008-02-08

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LAST APPLICANT(S)/OWNER(S) OF RECORD

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1. CHRYSLER LLC

Address:
CHRYSLER LLC
1000 CHRYSLER DRIVE CIMS 483-02-19
AUBURN HILLS, MI 48326
United States
Legal Entity Type: Ltd Liab Co
State or Country Where Organized: Delaware

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GOODS AND/OR SERVICES

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International Class: 012
Class Status: Active
motor vehicles, namely, passenger automobiles
Basis: 1(b)
First Use Date: (DATE NOT AVAILABLE)
First Use in Commerce Date: (DATE NOT AVAILABLE)

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ADDITIONAL INFORMATION

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Prior Registration Number(s):
1183673

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MADRID PROTOCOL INFORMATION

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(NOT AVAILABLE)

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PROSECUTION HISTORY

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NOTE: To view any document referenced below, click on the link to "Trademark Document Retrieval" shown near the top of this page.

2008-02-06 - TEAS Extension Received

Trademark: Snakeskin

Mark


(words only): SNAKESKIN

Standard Character claim: Yes

Current Status: Opposition period completed, a Notice of Allowance has been issued.

Date of Status: 2007-08-07

Filing Date: 2006-07-27

The Notice of Allowance Date is: 2007-08-07

Transformed into a National Application: No

Registration Date: (DATE NOT AVAILABLE)

Register: Principal

Law Office Assigned: LAW OFFICE 109

Attorney Assigned:
STEPHENS SONYA B Employee Location

Current Location: 700 -Intent To Use Section

Date In Location: 2008-02-08

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LAST APPLICANT(S)/OWNER(S) OF RECORD

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1. CHRYSLER LLC

Address:
CHRYSLER LLC
1000 CHRYSLER DRIVE CIMS 483-02-19
AUBURN HILLS, MI 48326
United States
Legal Entity Type: Ltd Liab Co
State or Country Where Organized: Delaware

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GOODS AND/OR SERVICES

---

International Class: 012
Class Status: Active
AUTOMOBILES
Basis: 1(b)
First Use Date: (DATE NOT AVAILABLE)
First Use in Commerce Date: (DATE NOT AVAILABLE)

---

ADDITIONAL INFORMATION

---

(NOT AVAILABLE)

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MADRID PROTOCOL INFORMATION

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(NOT AVAILABLE)

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PROSECUTION HISTORY

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NOTE: To view any document referenced below, click on the link to "Trademark Document Retrieval" shown near the top of this page.

2008-02-06 - TEAS Extension Received

This Day in Auto History: 2.13.1922 Racer Willi Heeks is born in Moorlage, Germany 2.13.1940 Robert James Eaton of the Chrysler Corporation is born in Buena Vista, CO 2.13.1953 Chrysler Corporation Ltd. of Canada President E. C. Row announces major expansions of the company’s factories in Windsor, ON to accommodate increased demand 2.13.1968 The Lincoln Continental Mark III is introduced in Chicago, IL

Source: Automobile History Day By Day, by Douglas A. Wick

Chrysler Recall Important in Truck Crash Lawsuit

St. Louis, MO: DaimlerChrysler Corp. is now the focus in a case in which a young girl was killed in a 2003 crash involving a Dodge Dakota truck driven by Bobby Fultz. The parents of Chelsee Cherry-Holmes, 18, are not only filing the lawsuit against Bobby Fultz, but they are also filing the suit against the dealership that addressed a problem with his Dodge Dakota truck and against DaimlerChrysler, the manufacturer, for what is suspected to be faulty ball joints that could have led to the crash.

The parents of Chelsee Cherry-Holmes state that a ball joint on the truck broke due to a defective design, which led to Fultz losing control of the truck. This ball joint was later recalled on various vehicles manufactured by DailmlerChrysler, including the Dodge Dakota models of trucks.

Attorneys state that had Fultz received the recall letter regarding the details of the defective part prior to the crash ever taking place, there would have never been a collision and Chelsee's life would not have ended so abruptly. Fultz's attorney is in agreement and has publicly stated that the crash was caused by the breaking away of the right front tire, which caused the October 1, 2003 crash in Franklin County on Highway O.

As for the details that led to the tragic accident, Fultz hit the Volvo that was driven by Joshua Bessinger, 19, head on. Bessinger, along with his two passengers, Matthew Carter, 20, and Chelsee Cherry-Holmes were all instantly killed. Fultz was seriously injured and was flown to St. John's Mercy Medical Center by helicopter. Fultz's injuries were considered crippling.

However, DaimlerChrysler argues that it was not the defective part, but Fultz's negligence that was the cause of the crash. The claim of negligence by DaimlerChrysler is based upon information received regarding statements that Fultz made to police.

Fultz admitted to police that he had taken two different kinds of pain pills at three different times that day. He didn't immediately disclose to police that a tire detached from his truck. He didn't provide such information until after the recall letter was received by him.

The drugs that were determined to be in Fultz's system were Zanax and Oxycontin, each taken three times in the course of the day. A toxicology report expert engaged by Chrysler stated that Fultz's ability to operate a motor vehicle would have been significantly impaired due to the power of such a drug cocktail.

The attorney for Fultz stated that Fultz had taken the Dodge Dakota to the Barreth Chrysler-Dodge Center in Washington, MO, due to a strange noise just two weeks before the crash. The mechanics who investigated the strange noise concluded that there was not a problem with the vehicle and sent him on his way.

Chrysler stated that notes by the mechanics said that the ball joints were in good condition, so there was no way that a deterioration of the ball joints could have occurred in just two weeks time or at least enough to cause a wheel to fall off. The experts with the company who examined the ball joints are expected to testify in the case that the ball joints showed no deterioration after the crash. Due to the good condition of the ball joints, they would have not qualified as part of DaimlerChrysler's recall.

Over a dozen witnesses are expected to testify in the case that is expected to last for approximately two weeks.

By Ginger Gillenwater

Drivers, Start Your Engines: Independent Test Confirms Fuel Freedom International's MPG-CAP(TM) Stretches Your Fuel Dollar!

Engine Conditioner Improves Fuel Efficiency Up To 15 Percent and Significantly Reduces Vehicle Emissions

ALTAMONTE SPRINGS, Fla., Feb. 12 /PRNewswire/ -- Fuel Freedom International (FFi) today released the results from extensive testing of FFi's MPG-CAP(TM) organic engine conditioner caplets, confirming that the caplets improve an engine's fuel economy by as much as 15 percent. The test, by an independent lab, supports FFi's claims that the MPG-CAP(TM) improves an engine's internal combustion process thus increasing engine efficiency, improving power, and greatly reducing harmful smog emissions.

"Part of Fuel Freedom's philosophy is to reduce the impact vehicles have on the environment and boost fuel efficiency for cars, trucks, boats, farm equipment, generators and other engines," said Randy Ray, CEO of Fuel Freedom International. "These results are great news for consumers interested in reducing the impact all types of gasoline- and diesel-powered engines have on the environment, while saving money at the pump."

Started in November 2005, FFi has grown into an international company, generating thousands of satisfied consumers each week through a network of more than 230,000 distributors in 224 countries and territories including Japan, Brazil, Great Britain, Korea, Mexico, Australia, Uganda, and Thailand.

"While we've had great testimonials from thousands of customers since we started the company, it is great to have yet another laboratory prove that MPG-CAPS can improve gas mileage and help families reduce their fuel costs," continued Mr. Ray. "With these test results and our 100% money-back guarantee, everyone should be using this product."

Fuel Freedom International takes pride in environmental consciousness and earth friendly products. The use of the MPG-CAP(TM) has spread wider and faster than predicted, resulting in an explosive growth of the Florida-based company. The product has been in demand and the business opportunity fulfills a desire by many to be entrepreneurs. Independent distributors have an entire line of ECO-friendly products designed specifically to provide excellent results and preserve the environment.

Methodology:

To test the product, a 2005 Dodge Dakota was tested on both a Mustang 1100 Dynamometer and a road course with untreated fuel. The vehicle reached a maximum horsepower of 158.1 HP and the average road mileage was 18.6 miles per gallon. After conditioning the engine, the vehicle was tested again using the same procedures. The maximum horsepower reached 164.3 HP and average road mileage was calculated at 20.81 miles per gallon. The results showed an overall increase in power and fuel efficiency.

For best results, MPG-CAPS must be used in specific quantities to your fuel tank capacity and in precise measurements. For more information about product usage, please visit http://www.myffi.biz/t-MPG-CAPS.aspx MPG-CAPS are sold in packages of ten for $20.95.

About Fuel Freedom International

Based in Altamonte Springs, Florida, Fuel Freedom International (FFi) is a global company operating in 224 countries and territories, including the United States, Canada, Mexico, Brazil, Uganda, Great Britain, Ireland, the EU, Australia, Korea, Thailand, Taiwan, Japan and Hong Kong. Operations are run by independent distributors located throughout the world, with a global network exceeding 230,000 distributors. For more information on MPG-CAPS and how to become an FFi distributor, visit http://www.myffi.biz. To find a distributor near you, call 1-800-493-9877.