Chrysler Group said on Tuesday that it will close its Ajax, Ontario, trim plant in December, 2003, when it has finished all of its production contracts. The move is part of the automaker's turnaround plan.
The Ajax plant makes seat-back covers for both Chrysler and Dodge branded vehicles. Those vehicles include the Town and Country, Grand Caravan, Intrepid, 300M and Concorde sedans.
The plant produced 630,000 sets of seat-back covers last year. The Ajax plant supplies Chrysler's Windsor Assembly plant and Brampton Assembly plant.
Chrysler said 648 workers at the plant will lose their jobs. About 70 percent of the plant's 602 unionized workers will be given a retirement package. Chrysler will give the 175 union workers who aren't eligible for retirement a cash buyout package, based on employee seniority. A similar deal for the plant's 46 non-union workers will be decided this week.