April 6, 2009 / 4:53 PM / 9 years ago

Chrysler to reopen two plants after parts dispute

TORONTO (Reuters) - Chrysler Canada is set to reopen a pair of assembly plants in Ontario on Tuesday, after a parts shortage forced their closure last week.

<p>A worker at the Brampton, Ontario DaimlerChrysler automotive plant leaves after his shift, January 29, 2001. REUTERS/Andrew Wallace</p>

The reopening of the Windsor and Brampton, Ontario, plants, confirmed in a statement by Chrysler on Monday, will mean about 8,000 people will be able to return to work.

The Windsor plant assembles minivans. The Brampton plant makes Dodge Challengers and Chargers, as well as the company’s 300 series.

The parts disruption came after dispute between Chrysler and Transcast Precision Inc, which supplies die-cast aluminum brackets for engines and transmissions.

Chrysler said it wanted to remove its tooling and parts from a Transcast plant in Wallaceburg, Ontario, and move them to one of its own plants on the west side of Toronto.

Chrysler said on Friday it had been “taken by surprise” when it found the tooling and parts were no longer at the supplier’s plant.

Transcast said in an Ontario court that it had moved the materials to at least six different locations in Ontario.

A Chrysler spokeswoman said on Monday that the automaker had located almost all its parts.

Reporting by John McCrank and Wojtek Dabrowski; editing by Rob Wilson

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