CANADA: Chrysler pulls supplier plant equipment
Chrysler is pulling equipment from a Canadian parts maker for the second time in 14 months after it was forced to idle a second assembly plant on Thursday due to a component shortage.
The auto maker won approval from the Superior Court in Ontario to begin removing its equipment from a Trans Cast Precision engine and transmission bracket making plant, Dow Jones reported.
Chrysler spokesman Dave Elshoff told the news agency the automaker had to idle its Brampton, Ontario, Dodge Challenger and Charger assembly plant on Thursday due to the bracket shortage. Chrysler temporarily stopped production at its Windsor minivan assembly plant on Wednesday and warned other North American factories could be affected.
Anonymous union officials told Dow Jones the problem centred on a payment dispute between Trans Cast and Chrysler in which Trans Cast claimed it was owed money and also attempted to initiate a price increase.
Chrysler is moving production to a company-owned casting plant in Etobicoke, Ontario.
Last year, the news agency noted, Chrysler ended all ties with Plastech Engineered Products in Dearborn, Michigan, after the company attempted to raise prices. The decision helped push Plastech into bankruptcy.