Chrysler-Fiat to pick up local suppliers contracts
More than 200 local auto suppliers will see their Chrysler LLC contracts picked up and will be paid more than $320 million when the automaker links with Fiat S.p.A.
The companies are among 1,200 Chrysler suppliers that have their contracts transferred to the new Chrysler-Fiat entity expected to rise out of Chrysler’s Chapter 11 bankruptcy proceededings. Suppliers will be paid for what they were owed before Chrysler filed for bankruptcy – 40 percent before the sale to Fiat and 60 percent after. A list of the local suppliers and how much their owed is at www.crainsdetroit.com/multimedia.
The transferred contracts do not guarantee future business. Fiat could opt to source from other suppliers in the future, but re-sourcing is likely to be a challenge in the near term, said William Kohler of Butzel Long P.C.’s automotive practice.