Chrysler to shut down all plants as part of restructuring

TORONTO — Southern Ontario truckers hauling car and truck parts to Chrysler will have to look for freight elsewhere — at least for the next couple of months.

While Chrysler Canada is not following its Detroit-based parent into bankruptcy protection, its production plants will also be idled until Chrysler LLC and Italy’s Fiat Group complete the technology-manufacturing merger that is said to be the core of the automaker’s restructuring plan.

Canadian Press quotes CAW president Ken Lewenza as saying the plants will continue operating until they have run out of parts — which is expected to happen "almost immediately." Lewenza predicts the shutdown could last between 30 and 60 days.

Nearly 10,000 workers in Windsor, Toronto and Brampton will be affected, and perhaps thousands of others employed in the supply chain.

Most of Chrysler’s major suppliers stopped production when the automaker filed for Chapter 11 this week, leaving Canadian operations running on current inventory.

Under the restructuring plan, Fiat will take a 20 percent stake in Chrysler in exchange for providing vehicle technology and building new vehicles and powertrains in the U.S.

Fiat can increase its holdings up to 35 percent by meeting period benchmarks set out by the U.S. government. The Italian automaker could be in a position to take a majority stake in Chrysler once all U.S. loans and debt is repaid.

The U.S. government is providing $8 billion to Chrysler and Canada is pitching in another $800 million.

Suppliers and transport providers are hoping for a speed recovery. Ontario Trucking Association President David Bradley recently reported that Ontario carriers are seeing some modest improvements in capacity utilization compared to a few months ago, but added "all bets are off" if the automotive sector crumbles in Canada.