April 1, 2009 / 5:02 PM / 9 years ago

Parts shortage idles Chrysler Canada plant

DETROIT (Reuters) - Chrysler LLC said on Wednesday it was forced to idle its minivan plant in Windsor, Ontario, because of a parts shortage and warned the issue, if unresolved, could disrupt production at its other plants in North America.

Chrysler also said in a memo obtained by Reuters that it is looking to relocate production of the parts, which include aluminum engine and transmission brackets, to its own casting plant in Etobicoke, Ontario.

Chrysler, controlled by Cerberus Capital Management, was not immediately available for comment.

The production disruption comes at a time when Chrysler is racing to restructure by winning sweeping concessions from creditors and the United Auto Workers union and complete an alliance with Italy’s Fiat.

President Barack Obama said on Monday the alternative would be bankruptcy.

Reporting by Soyoung Kim; Editing by Tim Dobbyn

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