Bankrupt Parts Supplier Triggers Chrysler Plant Closings

By Michelle Krebs February 4, 2008

Chrysler has temporarily closed four assembly plants and canceled a shift at a fifth plant after a major U.S. supplier of plastic trim parts filed for bankruptcy Friday and quit shipping parts to Chrysler, trade journal Automotive News and Reuters reported Monday.

Plants affected are in Belvidere, Ill., where the Dodge Caliber and Jeep Compass and Patriot are made; the Newark, Del., plant that makes the Chrysler Aspen and Dodge Durango; the Sterling Heights, Mich., plant that makes the Chrysler Sebring and Dodge Avenger; the Toledo, Ohio, plant that makes the Dodge Nitro and Jeep Liberty; and the Toledo Supplier Park, where Chrysler cut the second shift making Jeep Wranglers on Monday.

Except for the Wrangler and Sebring, the vehicles affected have been slow sellers.

So far other automakers, including General Motors and Ford, have not faced parts shortages from Plastech Engineered Products, which filed for Chapter 11 in Detroit on Friday.

Chrysler canceled its contracts with Plastech on Friday and moved the parts tooling to Plastech competitors that will be making the trim for the upcoming Chrysler 300.

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