Quality Weenie

Real Reason Plastech Filed Bankruptcy??

Could this be the real reason Plastech filled for bankruptcy?

Plastech's attorneys said Chrysler does not have the right to take the tooling because its Feb. 1 bankruptcy filing protects it from having to surrender those assets. (emphasis mine)

Makes you wonder if the only reason Plastech filled for bankruptcy was so Chrysler couldn't take their own tooling.

There is a hearing tomorrow about the release of the tooling. Chrysler is claiming bad quality, Plastech's financial situation is why they decided to cancel their contracts and pull their tools.

Douglas Doran, Chrysler director of interior purchasing, said that consultants BBK Ltd.'s advice that Plastech was financially insolvent was the primary reason Chrysler sought to end its relationship with the company.

In addition, he said Chrysler on three occasions sent a third-party to work with Plastech on quality issues and cited Plastech on some 450 specific quality issues in 2007 alone. (emphasis mine)

HOLY CRAP?

450 quality issues in one year?

And that is just with Chrysler, how many quality issues for all customers did Plastech have last year?

The same attorneys argue that removing the tooling would be disruptive to Plastech's overall business operations and that it's difficult in some cases to determine which tooling belongs to Chrysler.

I have to call bullshit on this one. Experience tells me that Plastech and Chrysler know very well who owns what, it's specifically put into the contracts who owns the tools.

This is going to get interesting.

Posted by Quality Weenie at February 14, 2008 08:37 AM | TrackBack