Chrysler, Plastech Ink Fourth Interim Parts-Supply Agreement

Chrysler LLC enters into a fourth interim agreement with bankrupt parts-supplier Plastech Engineered Products Inc.

The agreement continues the production of component parts at Plastech for Chrysler vehicle programs through April 2. A third interim agreement expired March 17.

Last month, Chrysler terminated its agreements with Plastech over substandard performance and tried to seize tooling from the Tier 1 supplier. Plastech filed for Chapter 11 protection, which triggered a stay and prevented Chrysler from transferring the work to alternate suppliers.

Plastech supplies parts for more than half of Chrysler’s products.

General Motors Corp. filed a request with the bankruptcy court last week to recover tooling from Plastech if it cannot fulfill supply agreements. Plastech provides parts to GM’s fullsize pickup and SUV programs.