Chrysler Canada assembly plants shut down

• Source: xinhua
• [16:01 May 02 2009]
• Comments

Chrysler's Canadian assembly plants shut down indefinitely on Friday after the parent company in the United States filed for bankruptcy protection.

Both of the company's assembly plants, located separately in Windsor and Brampton of Ontario province, are now closed as their stream of parts from suppliers has dried up.

The Brampton plant employs 6,700 workers and the Windsor one 4,400.

A Chrysler parts plant in Etobicoke is still operating, but it will shut down in 10 days, affecting 300 workers, said Mary Gauthier, a Chrysler spokeswoman.

Chrysler LLC said on Thursday in the United States that all of its plants would be closed down for 30 to 60 days while it went through restructuring under court-ordered creditor protection.

As part of Chrysler's restructuring plan, Italy's Fiat Group SpA will partner with Chrysler to give it technology and commit to building cars at Chrysler plants.

Washington and Ottawa together will contribute more than 10 billion U.S. dollars in their aid to Chrysler while it restructures.

In accordance with its share of financial aid of about 2.5 billion U.S. dollars to Chrysler, Canada will get a two-percent stake in the new company.

Prime Minister Stephen Harper said the deal will ensure Canada holds 23 percent of Chrysler's production.