As a job seeker, accept the job. Finish your other interviews, accept better job if you feel it to be one. Put in proper notice at new job.
You'll piss off the manager at CHrysler, and you'll piss of your recruiter (knowing this is contract). You'll never be able to work in that group again at Chrysler, you'll never be able to work with that contract house again.
BUT you'll have what you think is better than the chrysler job. Unless it isn't and you stay at the chrysler job you just accepted.
Do not share with your other interviews that you just started at chrysler, or you won't get the offer and you just wasted your own time.
Worst that happens is you piss off one manager at Chrysler, and one contract staffing company.
You end up staying at Chrysler anyway.
You are not locked into anything as a contractor, michigan is an at will employment state, the only thing a contract states from a contract house is that you will get paid for the approved hours that you work.