With minivan sales declining, Fiat Chrysler cuts 1,500 jobs at a Canadian assembly plant in Windsor, ON.
The move will trim production from three shifts to two at the end of June and will take place as FCA prepares to introduce upgraded versions of the Chrysler Pacifica and Pacifica Hybrid for the 2021 model year.
It also sets the stage for difficult discussions with Unifor, the union that represents Canadian auto workers, during contract negotiations scheduled to begin this summer.
FCA says it notified Unifor of the job cuts as it attempts to balance the plant’s daily production with the drop in demand for minivans built in Windsor.
“This decision comes as the company works to align volumes with demand while phasing out production of the Dodge Grand Caravan at the end of May,” FCA says in a statement. “The company will make every effort to place indefinitely laid-off hourly employees in open full-time positions as they become available based on seniority and will offer retirement packages to eligible employees.”
In a news release, Unifor predicts the shift reduction will lead to “significant job loss in the parts-supply chain, much of which is located on the other side of Detroit River in the United States, while also hurting the local economy in Ontario and the Canadian national economy.”
The release quotes union President Jerry Dias as saying: “Unifor is very disappointed that FCA was unable to find a solution that would have avoided job losses. There is no question that the economic ramifications will be felt across the region and throughout the country.”
David Cassidy, president of Unifor Local 444, which represents Windsor hourly workers, says in a statement: “We worked to prevent this shift loss with the full understanding of the devastating effect that this would have on our membership.
“Now we will ensure that these workers receive the support that they need in this process as we continue to fight for new product for Windsor Assembly with the goal of preserving and increasing these good-paying auto manufacturing jobs.”
The 4.4 million-sq.-ft. (408,800 sq.-m) plant currently employs 5,610 hourly and 234 salaried workers, according to FCA.
At the Chicago auto show this month, FCA unveiled the new Chrysler Pacifica and Pacifica Hybrid that will go on sale later this year in an attempt to shore up the automaker’s minivan sales, which have suffered from the popularity of SUVs and CUVs.
Tim Kuniskis, who as head of FCA’s global passenger cars in North America is in charge of the minivan business, says the two vehicle upgrades will bolster sales.
Changes to the Pacifica include making all-wheel drive available on the minivan for the first time since 2004 and equipping the ’21 model with a new, fifth-generation U-Connect infotainment system.
“Through 37 years and more than 15 million minivans sold, Chrysler has defined the minivan segment, and we plan to continue redefining it with the new 2021 Chrysler Pacifica,” Kuniskis says. “We also have the new top-of-the-line Pinnacle model (left), and Pacifica is still the only hybrid in the segment.”
While it is ending Dodge Grand Caravan production by eliminating the third shift in Windsor, FCA will continue building the Chrysler Voyager, the less-expensive version of Pacifica.
Kuniskis has acknowledged the fate of the Chrysler brand name is tied to the minivan segment. However, in Chicago he brushed aside reports the Chrysler nameplate may disappear once FCA’s merger with French automaker PSA is completed.
“FCA is a house of brands,” he said. “The beautiful thing is we don’t have to be all things to all people.”
