So, here we are. The interim agreement between Chrysler and bankrput parts supplier Plastech that kept mission critical car parts flowing is set to expire. Earlier today (Thursday), Chrysler asked a federal judge to let them remove tooling from the bankrupt parts suppliers' premises. If so, Chrysler says they could be up and running with new parts in less than a week. According to Automotive News [AN, sub], Plastech's Veep of Ops called bullshit. "I don't believe that," Donald Coates testified. "There's no way it could be done in 4 or 5 days." So what's the real deal? Matt DeMars, Plastech's president of interior and exterior business, pegged the necessary transition at 24 to 30 months. Coates testified that removing the tooling would mean "four or five assembly plants would be idled within five hours of a shortage… followed by material shortages at 11 or 12 plants within 72 hours, with all plants affected within a week." Richard Schmidt, Chrysler's senior manager of materials supply operations, said "vehicles could be assembled without some parts and wait on a factory lot until the parts are added. But that could create quality problems. Vehicles could be damaged by parts being added out of sequence. Customers also would face delays as their vehicles wait on lots to be completed." Customer delays? In Chrysler's dreams. Meanwhile, Chrysler's nightmare continues…
UPDATE: As we predicted, Judge Phillip Shefferly urged Chrysler and Plastech to extend their interim agreement. Next Tuesday, at 4pm EST, Judge Shefferly will rule on Chrysler's request to remove tooling from the bankrupt parts maker.
Wow… I can’t believe they’d even let a guy like Richard Schmidt talk to the media. Where’s Vines when you need him? Oh wait…
vehicles could be assembled without some parts and wait on a factory lot until the parts are added
Yep, I’d buy one of those cars…for a thousand bucks or so.
That is just weird, cars manufactured without some parts, to be added later? Good things surgeons don’t function like that. Why don’t we ever hear of Toyota and Honda having these kinds of problems?
I saw a manufacturer pull its equipment out of a strikebound CAW parts plant with the assistance of a motorcycle gang. Trust me, you didn’t want to mess with these dudes!
Superbly planned and organized they achieved complete surprise, stripped the place to the bare walls and were gone in 12-hours, and reportedly cranking out parts in a Mexican maquiladora 10-days later.
Chrysler must really believe this bankruptcy judge knows nothing about the automotive plastics business.
There is simply no way in hell a move and re-launch of this scale could be completed in four days, or even 6 months for that matter!. To simply finish a bald inventory, and then properly load and physically move the molds and scores upon scores of ancillary equipment up to leave plastech’s facilities is at least two weeks in an absolute best case home run we bribed everyone involved scenario. Then the issues and logistics to be solved to properly relaunch THREE THOUSAND tools many of which are painted product requiring extensive proveout and testing would take at least two years just as Plastech’s VP stated.
My advice to Plastech: Contact the NHTSB to let them know about Chrysler’s so called “plan”.
My advice to Cerberus: Maybe this is how your CEO used to sell lumber, caulk, and nails to amateur do it your selfers at the big orange stores, but get him out of Lah Lah land already and into the real automotive world where all our safety and quality standards are in place FOR A REASON.
My advice to the other molders out there that are still standing: We know as of yesterday none of this will be going to Blue Water. Still paying attention? The rest of you should think carefully before entering into (or in some cases expanding) contracts with Cerberus without a stipulation for market value of material.
Prediction for how the judge will rule? None. Could go either way.
@hltguy – good point. From everything I’ve read Honda and Toyota treat their suppliers like business partners. Everyone does a good job, everyone profits. I think in a lot of ways they are more demanding of their suppliers, but in productive ways not just price squeezing.
Chrysler acts like Plastech is a potential competitor whose about to start manufacturing Sebrings and put Chrysler out of business. No wonder Chrysler seems to want them to die.
Chrysler acts like Plastech is a potential competitor whose about to start manufacturing Sebrings and put Chrysler out of business.
Nah, Chrysler’s own Sebrings are already putting Chrysler out of business.
Samir Syed :
February 14th, 2008 at 10:35 pm
Chrysler acts like Plastech is a potential competitor whose about to start manufacturing Sebrings and put Chrysler out of business.
Nah, Chrysler’s own Sebrings are already putting Chrysler out of business.
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True dat! I had the misfortune of driving a rental Sebring sedan (base model) a couple of days ago. I’m still reeling from the experience. It’s as if the car was designed by someone who had NEVER driven a modern vehicle. It made my current Kia Optima rental seem like a Rolls Royce (or fill in your high-end auto of choice) by comparison.
Ok, I’ve been reading this site for more than 6 months now. This article makes me throw the BS flag on most anything is written here.
To me is quite evident very FEW people around here knows how an assembly plant works, how cars are assembled, whatever.
Chrysler will face a lot of lacking parts due to this problem. And as stated, a car can BE assembled with lacking parts, being them key or not. It takes a very careful tracking and control to guarantee quality. They don’t state which parts will be in shortage, so a judgement about the effect on quality based on the information given is plain BS.
Problem is the mass volume the company handles, which will pile a LOT of incomplete cars. And even so, it’s a “problem” that can effectively be solved.
You would be surprised to know lacking parts in this media is not a uncommon issue, independent of the brand ;) .
Is Chrysler’s parts supply chain falling apart? I wonder where it gets crankshafts. A neighbor’s PT Cruiser suddenly developed a bad oil leak. The dealership told him the rear main and/or crankshaft was defective. Luckily, the car was still under warranty. But unluckily, that was a MONTH ago; the dealership claims it’s a common problem with that engine so there’s a wait for parts. Anyone else heard this?
Nobody wants these crap vehicles anyhow.
Moving production tooling for plastic parts from one factory to another is likely to be a problematic process. Precision manufacturing is full of details and optimizations to get things right. Even getting the final color exactly right can be a challenge.
Imagine the cars built with a mix of parts from different suppliers and built in different months. How many different shades of gray do you want your interior in????
You also have to wonder about the wisdom of the new suppliers who agree to take on the transferred tooling. Who really wants to get into bed with the three headed dog?