Local Suppliers Won't Suffer with Chrysler Changes

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

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.

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