May 20, 2008

Plastech Going Out Of Business

I called this one when this whole thing started with Plastech and Chrysler.

Plastech Engineered Products Inc. plans to sell its businesses and all of its assets to pay its creditors, a move that eventually would dissolve the company.

They were probably planning this all along and wanted to be able to blame someone else for their demise.

The Dearborn supplier of plastic parts, which has been in Chapter 11 since Feb. 1, is negotiating to sell its interior parts business to Johnson Controls Inc., already Plastech’s largest customer.

Plastech plans to sell its exterior parts business through an auction to be held June 16. The deadline for bids is June 13.

Plastech wanted to emerge from bankruptcy as a stand alone company, but its creditors prefer the option of selling the company’s businesses.

So we see that Plastech will be able to blame it's creditors for it's demise.

And it's demise is coming fast.

Last week Plastech alerted workers at four plants in Michigan, Ohio and Indiana, that the factories are scheduled to close by July 13.

I doubt that Johnson Controls will buy the plants, they are probably just buying the business (ie parts) and will move everything to it's own plants.

All those employees at Plastech are now out of a job in a state with 7% unemployment rate.

With a July 13th shut down date, Plastech knew quite awhile ago that it was closing it's door permanently. That is only 60 days away, I know it takes longer then that to close down a company as big as Plastech was. Sounds to me like they wanted to screw it's customers and decided not to annouce it's closing until the last possible minute.

Funny thing is, that I just saw last week job postings for Plastech, they knew last week they were going out of business why did they post for jobs.

Posted by Quality Weenie at May 20, 2008 11:57 AM | TrackBack

Once again you are showing your ignorance on the whole subject and relying on the wonderful press to form your uneducated opinions.

Posted by: John at May 20, 2008 01:58 PM

Oh, so sorry John but I do know what I am talking about.

Been there, done that sort of thing.

Worked for C&A, they went out of business, it surely took longer then 2 months to shut the entire business down. Hell takes at least that long to transfer programs.

You have to get permission from the customer to transfer programs, it's not automatic.

The union requires 60 days notice of sales or closures, so that is the only reason we are hearing about this 60 days out from closing.

Plastech is, sorry was a crappy assed supplier. Had to deal with them way to many times and I am sure glad I won't have to deal with them anymore.

Posted by: Quality Weenie at May 20, 2008 04:26 PM

Yeah, I was at Collins and Aikman too, 15 and Mound.
We pumped out the worst parts, I can't believe they put them on cars, but I don't think that's why we went out of buisness.

Posted by: hanrahan at May 20, 2008 05:23 PM

This quality weenie guy sounds like a 16 year old kid with a computer. Maybe it's time to go outside and play or wait until you graduate high school before you try to figure anything else out.

Posted by: joe hoarsh at May 21, 2008 05:23 AM


Oh, you hurt my wittle fweelings Joe.

I mean come on, such juvinile taunts are not going to get me all bent out of shape and make me start calling you an asshole and such.

Sounds like maybe some Plastech employees trolling around looking to start a fight and condemn anyone not towing the company line.

Posted by: Quality Weenie at May 21, 2008 07:01 AM

Whether you believe it or not, there are many more factors to the whole thing than you may realize. First of all, this is a different company than C&A. Your personal experience with Plastech has made you a little bitter. But unless you operate in a high level within a corporation you may never understand the full impact of the legal proceedings or the purchasing of a company in Chapter 11. I would be willing to bet that JCI buys the interior business and keeps the majority of the plants.

Posted by: John at May 21, 2008 11:56 AM

Yea, I am not only "bitter" but I also cling to my guns and bible.

Again, been there done that on both sides of the coin.

JCI has a lot of plants already, they probably have a lot of excess capacity too. Why would they want to bring in extra plants and all the expenses that go along with them when they could pull any business they buy into their own plants to fill up that excess capacity.

Plus, I am sure the Big 3 are already working on moving their business to other suppliers. We know Chrysler is, that is the whole reason this started.

Posted by: Quality Weenie at May 21, 2008 12:06 PM

Sounds to me more like "Joe" and "John" are the "bitter" ones. I'm willing to bet that QW saw this one coming LONG before deciding to blog about it.

Sorry to hear that so many people will be out of work. That is one of the problems with big corps, the executives get their parachutes, cushy landing and find other cush-jobs. While the backbone of the organization, the people who worked the line are SOL without a second glance. Hope they do right by their people.

Posted by: Lee Ann at May 21, 2008 12:10 PM