When "Plastech Engineered Products Inc." declared bankruptcy last week, it was only a matter of time before the residual effects in the history were felt. That has now happened in relationship to Chrysler, which said as a result of the bankruptcy, they'll have to close four assembly plants, along with one shift at another, on a temporary basis.
Plastech makes major components for cars at all the major U.S. automotive factories, as well as Toyota Motor (NYSE:TM).
The four plants are located at Newark, Del.; the Belvidere plant in Rockford, Ill.; Toledo, Ohio and Sterling Heights, Mich. The second shift being eliminated will be at the Toledo Supplier Park in Toledo.
It's estimated that about 10,500 workers will be directly affected by the plant shut downs.
Chrysler spokesman Kevin Frazier said the company terminated its contract with Plastech on Friday.
A representative from Ford Motor (NYSE:F) said they have no plans to shut down any plants in relationship to the Plastech bankruptcy.
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