Chrysler, which on Friday reported a 12 per cent slump in US vehicle sales during January, said workers would be notified by plant officials or local media about future work schedules.

The closures of plants in Illinois, Delaware, Michigan and Ohio affect about 10,500 employees.

Operations have been ratcheted back at another Ohio plant.

Company officials said Chrysler had canceled its purchasing orders with Plastech Engineered Products on Friday. Plastech had provided Chrysler with a range of plastic components for its vehicles.

'The delayed volume will be rescheduled in the near future. We are monitoring the situation closely and will adjust inventory mix accordingly to ensure our operations resume efficiently and as quickly as possible,' Chrysler said in a statement.

US media reports say Plastech filed for bankruptcy protection on Friday. A Plastech spokeswoman declined to comment on the reports.

Chrysler's US vehicle sales declined to 137,392 last month.

The third-largest US automaker has cut thousands of jobs in a bid to overhaul its operations since it was taken over last year by US private equity giant Cerberus in a US$7.4-billion (S$10.5 billion) deal. -- AFP