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A temporary court order has forced Transcast Precision Inc. to supply sufficient parts to Chrysler, GM, Magna and Gates for 14 days of production. Additionally, another proceeding is required within that two-week period to settle matters regarding ongoing price and supply.

“If the North American auto industry intends to rebuild itself and emerge from our current recession, it must defend the rights of all business owners – especially the auto parts manufacturers who are being economically exploited,” said Dean Topolinski, President and Director of Transcast Precision Inc. “We are hopeful that the courts will recognize the established pricing and negotiations tactics that exist in market – ones predisposed to the unfair treatment of smaller auto parts manufacturers and suppliers that rely on relatively few, but very large customers.”

“Transcast has regrettably been portrayed by Chrysler at al as a form of corporate raider seeking to take advantage of the OEMs in the current economic maelstrom in which the automotive industry finds itself. Transcast has had no opportunity to present its side of this story in the proceedings, which were commenced without notice to Transcast and while senior management were out of Canada.”

On Monday March 30th, Transcast initiated contact with Chrysler to sell existing company assets and to enter into an agreement that would permit the long-term viability of the new company. While the correspondence indicated that inventory would need to be purchased above previous prices, the increase was required to help offset a number of transition costs including legal bills and unpaid severance from the previous supplier. This price increase was for a 5-day term only. The longer-term agreement was to be negotiated during this interim phase.

(Source) Press

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