Jeep plant calls back thousands of workers
06.02.2008 15:02
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- Source: toledoblade.com
It was a temporary agreement reached yesterday between Chrysler LLC and a key supplier, but the shipment of interior vehicle parts meant thousands of laid-off workers at the Toledo Jeep Assembly complex have been called back to work. Plastech Engineered Products Inc., of Dearborn, Mich., was to begin resupplying Toledo Jeep and other Chrysler plants, so the assembly plants were to be nearly in full production yesterday afternoon. Toledo Jeep makes Jeep Liberty, Jeep Wrangler, and Dodge Nitro. The complex employs 4,000 Chrysler workers. Most were furloughed Monday. Details of the agreement between Plastech and the automaker were not disclosed, but the agreement extends through Feb. 15. Chrysler last week canceled its contracts with the supplier and tried unsuccessfully to recover its tooling to move it to other suppliers. Plastech then filed for Chapter 11 bankruptcy, blaming it on the Chrysler action. The supplier continued to make parts for General Motors Corp. and Ford Motor Co. The supplier has two plants in Monroe, one in Bryan, and one in Wauseon. Auto industry analyst Jeff Mengel, of Plante & Moran PLLC in suburban Detroit, said the automaker and its supplier are engaged in "a dance" that might work itself out or end their relationship. "I think there are a lot of suppliers out there that would love to have additional product in their facilities," he said. "This is not going to be a simple solution for anybody." Dan Henneman, the top United Auto Workers Local 12 leader at Toledo Jeep, said second-shift workers at the complex returned to work yesterday afternoon. Other area suppliers also were affected, such as second-shift workers at Chrysler's Toledo Machining plant in Perrysburg Township, who were laid off Monday through the week. The automaker and Plastech presented their case in U.S. Bankruptcy Court in Detroit yesterday. Chrysler wants authority to reclaim its equipment. Haig Stoddard, a senior auto industry analyst with Global Insights Automotive Group in suburban Detroit, said the temporary agreement likely won't settle much. "In the interim, it allows them to keep production going in hopes that they'll come to a more permanent solution until they go to court on Feb. 13," he said. "Chrysler was in a position that they had to do something. They had to get production going again or they would have been losing an awful lot of money," Mr. Stoddard said. Plastech makes 70 to 80 parts for Liberty and Nitro and another two dozen for Wrangler, union officials said. At the Jeep complex, production ended Monday morning. The complex makes about 1,200 Liberty and Nitro models and 580 Wrangler vehicles each day. A Chrysler spokesman said the lost production would be made up. In all, Chrysler idled three other assembly plants - in Sterling Heights, Mich.; Newark, Del., and Belvidere, Ill. - so that 10,500 employees were laid off. The dispute threatened to close all 14 Chrysler assembly factories and shut down production of its entire fleet of vehicles, according to its filings in Plastech's court case. Plastech, which had sales of $1.4 billion last year from its 36 facilities and 7,600 workers, has been squeezed in recent months as its customers continue to demand price cuts while its costs for raw materials skyrocketed. Chrysler said it provided Plastech $17 million in financial aid last year in exchange for an agreement that the automaker owned the tooling equipment, according to court documents. Plastech's contracts with the automaker were worth about $200 million, making engine covers, grill panels, moldings, metal stampings, door panels, floor consoles, and safety-restraint system components. Plastech officials could not be reached for comment. Contact Larry P. Vellequette at:
lvellequette@theblade.com
or 419-724-6091.
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