Chrysler Minivan Sales Slump Forces Job Cuts in Canada

March 5, 2009
1,200 workers become jobless

Chrysler announced on March 5 it is eliminating a shift at its Windsor, Ontario minivan assembly plant, leaving 1,200 people jobless as sales of its iconic people-mover continue to sag.

"Given today's severe economic environment and continued lack of consumer credit, which has affected the minivan market as well, we cannot sustain a three-shift operation at Windsor as we continue to work towards the appropriate level of plant utilization," said Frank Ewasyshyn, Chrysler's vice president of manufacturing. The reduction will take effect no sooner than June 24.

The Windsor plant began production of Chrysler minivans in 1983 to accommodate an American "Baby-Boomlet" when the Baby-Boom generation started to have children. Chrysler has since sold 12.5 million minivans worldwide, but competition has eaten away at its market share, now at 44% in the U.S. and 58% in Canada.

The Windsor plant currently produces the Dodge Grand Caravan and Chrysler Town & County minivans, as well as the Volkswagen Routan.

Since 2007, Chrysler has reduced its total production capacity by 30% or 1.2 million units of capacity. This year, it plans to eliminate an additional 100,000 units, cut costs by $700 million and lay off 3,000 more workers.

By the end of 2009, Chrysler will have eliminated seven models from its product lineup, it said.

Copyright Agence France-Presse, 2009

Popular Sponsored Recommendations

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Turning Your Frontline Workforce into a Competitive Advantage: A Comprehensive Guide

Sept. 19, 2023
In this guide, we'll explore how manufacturers are using digital technologies to preserve the bottom line and maintain growth by enabling and empowering their #1 asset - their...

Smarter Savings for Manufacturers - Guide

Sept. 11, 2023
Boost your manufacturing sales and revenue while reducing costs. Learn how one platform can help your business be more agile and productive in today's market.

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!