Question: Please answer the 3 critical thinking questions in paragraphs based on the text reading. Thank you! VIGNETTE: CHRYSLER, LLC, VERSUS PLASTECH ENGINEERED PRODUCTS INC. On

Please answer the 3 critical thinking questions in paragraphs based on the text reading. Thank you!Please answer the 3 critical thinking questions

VIGNETTE: CHRYSLER, LLC, VERSUS PLASTECH ENGINEERED PRODUCTS INC. On February 4, 2008, the major U.S. automaker Chrysler, LLC, was forced to shut down production at four of its assembly plants. A fifth plant lost a full shift of production; all of those events were caused by lack of delivery on the part of a major supplier, Plastech Engineered Products Inc. A Chrysler supplier for the previous 10 years, Plastech supplies about 360 different parts that are used in nearly every vehicle the struggling number three U.S. automaker makes, including the Jeep Wrangler and the Dodge Ram pickup 399 400 PART 5 Managing Contracts and Relationships truck. 1.2 2 The cost to Chrysler of the shutdown was around $250 million, and continued interruption of sup- ply threatened to affect all 14 Chrysler assembly plants. In an attempt to prevent further losses, Chrysler has been seeking to take equipment and business from Plastech and resource the work to other suppliers. To gain protection against having to surrender assets, Plastech has filed for Chapter 11 bankruptcy. How does a relationship that has lasted a decade come to litigation in a U.S. bankruptcy court? Chrysler claims that Plastech no longer could meet its production demands. Chrysler wants to retrieve tool- ing to give it to a new supplier. Plastech felt that continued price pressures, in spite of rising material costs and declining production volumes, created financial instability that resulted in its inability to meet cus- tomer requirements. U.S. bankruptcy Judge Phillip Shefferly feels that allowing Chrysler to repossess its tooling so early in Plastech's bankruptcy proceedings 'will likely destroy the possibilities for an effective reorganization.' Chrysler will suffer some economic harm, Shefferly said, but has numerous options, including procuring more tooling for alternate suppliers or going back to the bargaining table with Plastech." No matter how it ends, additional costs will be incurred to ensure uninterrupted supply and continued production. Also, it is likely that Plastech will be one of the first but certainly not the last auto industry supplier forced into bankruptcy by rising material costs, declining vehicle production volumes, and pressure for price cuts from the troubled Detroit-based automakers. CRITICAL THINKING QUESTIONS 1. Who is really at fault? 2. Could the legal issues between Chrysler and Plastech have been resolved in a more constructive manner without litigation? 3. How could this situation have been prevented

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