Chrysler announced earlier on Thursday that things would be business as usually during its time in bankruptcy, but the latest word out of Auburn Hills proves that will not be the case. Chrysler will shutter most of its production plants while under bankruptcy protection.
According to Automotive News, Chrysler will idle most of its production plants during its time in bankruptcy. Chrysler operates 12 assembly plants, 8 of which are in the United States. The Michigan automaker also runs five engine plants, seven transmission plans and six stamping plants.
Up to 36,000 Chrysler employees in the United States and Canada could be affected by the shutdown. Employees will be eligible for supplemental wages during the shutdown, worth up to 80 percent of normal pay.
Chrysler hopes to emerge from bankruptcy within 30 to 60 days, but some estimate Chrysler’s Chapter 11 filing could take up to two year to sort out. In the meantime, Chrysler shutdown will likely put an increased strain on North American parts suppliers, with General Motors’ recently announced nine week shutdown not helping the matter.
