Fiat Chrysler Automobiles on Thursday announced it will scale back production at its Windsor Assembly Plant, citing declining minivan sales as the reason. At risk are about 1,500 jobs. FCA said it will return Windsor Assembly to a traditional two-shift operation beginning Sept. 30. The move is done to "better align production with global demand," FCA said in a statement. This move impacts some 1,500 people at the facility, FCA said, adding that retirement packages will be offered to eligible employees and 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. Late Thursday, Unifor President Jerry Dias tweeted: "I am deeply concerned about the 1,500 plus families, the community of Windsor & the Cdn auto industry - all affected by FCA Canada's decision to end the 3rd shift at Windsor Assembly Plant. #Unifor has demanded an urgent meeting with @fcagroup to address." Fiat Chrysler builds the Chrysler Pacifica, Chrysler Pacifica Hybrid and Dodge Grand Caravan in Windsor. It employs 6,104 people on three shifts. Through February, sales of the Pacifica are down 24 percent to 19,422 and sales of the Dodge Caravan are down 27 percent to 19,634 for the United States, according to FCA's sales. But FCA's total U.S. sales through February are flat at 289,118 cars. Last month, FCA announced $4.5 billion in projects, with investments at plants in Detroit as well as Sterling Heights, Warren and Dundee. In Detroit, the company wants to convert the Mack Avenue Engine Complex so it can manufacture the next-generation Jeep Grand Cherokee and a new three-row, full-size Jeep SUV and to retool the Jefferson North plant to continue production of the Dodge Durango and next generation Grand Cherokee. More:As Detroit readies for Fiat Chrysler expansion, fate of Mount Elliott facility unclear More:FCA to open Jeep factory in Detroit, invest $4.5 billion in southeast Michigan At that time, UAW Vice President Cindy Estrada said the expansion rewards U.S. autoworkers for their hard work and shows confidence in their commitment to the future. “This is especially exciting given that these are good union jobs with union wages and benefits that have been collectively bargained for with the company,” she said. “We also look forward to collaborating with FCA, the City of Detroit and other community leaders on a Community Benefits Agreement that re-imagines our city and empowers our citizens to create sustainable communities with long-term viability." But in February Wall Street analysts warned of growing new-car inventory on dealers lots across all automakers. Morgan Stanley's equity analyst Adam Jonas wrote that in dollar terms, it's about $140 billion in inventory sitting on dealers' lots. So FCA's move to scale back production at Windsor Assembly is proactive because the high inventory levels, along with other economic concerns, have analysts worried the second half of this year won't be as good for carmakers as had been hoped. More:New cars sales expected to stall, dinging the Detroit 3 [Want automotive news sent to your inbox daily? Sign up for our newsletter here] "The rising inventory despite a stalling sales trend is of particular concern to us given market expectations of a significant second-half ... recovery in earnings for many of our U.S. names," Jonas wrote. Jonas thinks Ford Motor Co.'s earnings per share will move from minus 20 percent compared with last year in the first half to up 7 percent in the second half. But Jonas warned, "FCA’s second-half earnings per share (is expected) to fall 18 percent year over year, growing 6 percent year-over-year in the first half." Contact Jamie L. LaReau at 313-222-2149 or jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter.<doc-sep>Share this Story: FCA Canada to stop third shift at Windsor Assembly Plant, cutting 1,500 jobs FCA Canada to stop third shift at Windsor Assembly Plant, cutting 1,500 jobs Photo by Dan Janisse / Windsor Star Article content Sluggish sales of the Windsor-built Chrysler Pacifica have prompted Fiat Chrysler Automobiles to eliminate the third shift at the Windsor Assembly Plant and with it about 1,500 jobs and hundreds of others at feeder plants. It will be the first time the plant has operated with just two shifts since 1993. We apologize, but this video has failed to load. tap here to see other videos from our team. Try refreshing your browser, or FCA Canada to stop third shift at Windsor Assembly Plant, cutting 1,500 jobs Back to video “It’s devastating,” said a visibly emotional Unifor Local 444 president Dave Cassidy at a Thursday afternoon news conference at the Turner Road union hall. “It’s devastating for everybody.” They go up and down, we have layoff weeks, there’s inventory adjustment and at that point there was no discussion of that at all Cassidy and secretary-treasurer James Stewart were summoned to a meeting with Chrysler officials at 2 p.m. “In our collective agreement they have to provide six months notice, so September of 2019 there could be, potentially, 1,500 jobs lost at Windsor Assembly Plant, going down to two shifts,” said Cassidy. “This is not a General Motors/Oshawa issue, this is a sales and a business decision. I can tell you we are going to keep pressure on FCA … to fully utilize our facility.” Advertisement Story continues below This advertisement has not loaded yet, but your article continues below. Article content FCA Canada head of communications LouAnn Gosselin confirmed the news in an emailed statement. “In order to better align production with global demand at its Windsor Assembly Plant, FCA notified Unifor today that it intends to return the plant to a traditional two-shift operation, beginning Sept. 30, 2019,” Gosselin wrote. “Retirement packages will be offered to eligible employees. 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.” On Tuesday, FCA announced that Windsor Assembly, which currently employs 6,100 people, would be on shutdown for the weeks of April 8 and 15. Photo by Chris Thompson / Windsor Star It will be the third time the plant is on shutdown this year, but Cassidy said he was blindsided by Thursday’s announcement. Advertisement Story continues below This advertisement has not loaded yet, but your article continues below. Article content “No, I had no indication,” Cassidy said. “They announced the two-week shutdown and that’s all we knew. It’s cyclical, right? They go up and down, we have layoff weeks, there’s inventory adjustment and at that point there was no discussion of that at all. At 2 o’clock today James and I received the notice, the company asked us to come to a meeting, we went to a meeting. “It’s so new.” Asked about Mayor Drew Dilkens’ state of the city speech earlier this year where Dilkens stressed Windsor’s need to diversify, Cassidy became enraged. “(Expletive) Drew,” Cassidy said. “Seriously. Drew Dilkens, I have reached out to Drew Dilkens so many times, I have tried to bridge a gap there, the election is over, Drew Dilkens can’t take his finger off — there are two crown jewels in this city right tied to this local, Windsor Assembly Plant and Casino Windsor. Drew Dilkens needs to pay attention to this. This is devastating for the City of Windsor and I hope that Drew Dilkens might reach out to me. Advertisement Story continues below This advertisement has not loaded yet, but your article continues below. Article content “That’s it. I’m good.” Cassidy then abruptly ended the news conference and bolted out of the union hall. Yearly Canadian sales of the Pacifica were down 186 vehicles to 5,999 in 2018 while Caravan sales slipped by about 14,700 units to 32,253. Sales of the Pacifica in the U.S. (118,322) in 2018 were virtually unchanged. Caravan sales jumped from 125,196 in 2017 to 151,927 last year. Within hours of the announcement provincial and federal politicians of all stripes weighed in on the news. “In the face of this extremely disappointing announcement from Fiat Chrysler, our government will not waver in our support for the thousands of men and women that go to work in Ontario’s auto sector every day,” Premier Doug Ford said in a statement. Advertisement Story continues below This advertisement has not loaded yet, but your article continues below. Article content “I want the employees at the Windsor Assembly Plant to know that my government stands with you and your families. We will fight tooth and nail to protect the jobs of the autoworkers in Windsor.” Ford said he will be speaking with FCA Canada president Reid Bigland and Unifor president Jerry Dias to urge them to work with him to protect those jobs. “My message to Fiat Chrysler is this: do not make this decision based on the anti-business policies of the former government over the past 15 years,” Ford said. “Our government is lowering taxes, lowering electricity rates and slashing red tape. There has never been a better time for auto manufacturers to invest in the Province of Ontario.” NDP Opposition Leader Andrea Horwath urged the government to move quickly. Advertisement Story continues below This advertisement has not loaded yet, but your article continues below. Article content “We can be a world-leader in manufacturing the cars of the future for generations to come, but it won’t happen by accident,” Horwath said in a statement. “We need the provincial government to take action to keep Ontario on the cutting edge of the auto sector. Tens of thousands of Ontario jobs in auto, auto parts and spinoff industries, are at risk if the province fails to take action.” The federal Minister of Innovation, Science and Economic Development Navdeep Bains also issued a statement. “I am very disappointed by the news coming from the Windsor Fiat-Chrysler Automotive plant,” Bains said.<doc-sep>Approximately 1,500 people will be out of work starting Sept. 30, once Fiat Chrysler Automobiles terminates its third shift at the Windsor assembly plant. It's a shift that's been in place since 1993, according to Unifor Local 444 president Dave Cassidy. Gillian Laflamme, who works at the plant, was at the union hall when she heard the news. Wiping away tears, she said that, until yesterday, she'd been trying to stay positive. "There's, like, 1,200 people who want to throw up right now," she said. Ever since the third shift began, rumours of its possible termination have been circulating, said Laflamme. 'I did not expect to get hit with this' CBC News Windsor 0:31 Gillian Laflamme says Windsor has been trying to keep spirits up to save GM jobs and did not expect this news. 0:31 Cassidy said the news is devastating for everyone. "Our feeder plants, obviously, will feel the ripple effects," he said, referring to factories that supply parts to the Windsor plant. The Windsor plant makes the Chrysler Pacifica, the Chrysler Pacifica Hybrid and the Dodge Grand Caravan, according to Fiat Chrysler's website. Premier Ford responds The company has given the union the required six-month notice for a permanent reduction in the plant, according to Cassidy. The plant will return to a two-shift production in September. In a news release, Ontario Premier Doug Ford called the announcement "extremely disappointing," and said his government will fight to protect the jobs of auto workers in Windsor. "There has never been a better time for auto manufacturers to invest in the province of Ontario," he said. The Windsor assembly plant will be returning to a two-shift production starting Sept. 30. (Rebecca Cook/Reuters) While the news came as a shock to the union Thursday afternoon, Cassidy called the change a "sales and business decision." "This is not a General Motors-Oshawa situation," he said, referring to GM's announcement last November that it would end production at its plant in Oshawa, Ont., by the end of 2019, affecting about 2,600 union workers. "[Fiat Chrysler] is here in Canada," Cassidy said. "We build a great product here in Windsor, and we're going to continue to do that," he said. Changing market Fiat Chrysler says the decision was made to "better align production with global demand." Company spokesperson LouAnn Gosselin said in an email that retirement packages will be offered to eligible employees. "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." About 1,500 people who work at the Windsor plant will be out of a job in six months. (Geoff Robins/Canadian Press) In December last year, Windsor Mayor Drew Dilkens said the city needs to start planning as if Fiat Chrysler were leaving Windsor, and spoke about the importance of diversifying the economy and attracting new investment. On Thursday, Dilkens said GM's closure of the Oshawa plant was a "wake-up call." "At least we're not in the midst of a recession, where it's hard to find another job," he said. "There are other positions available." Dilkens said he's in touch with the company to see what other vehicles might be made at the plant, but said, "We don't push them." "What we're seeing right now is that people aren't buying the [Chrysler] Pacifica and [other minivans], as they were in the past." 'Keep the pressure' Cassidy said the membership will get through the layoff together. "Our product in Windsor is No.1 in the world. Everyone knows it," he said. "And we're going to keep the pressure on the company." One veteran FCA employee's advice to workers CBC News Windsor 0:43 Kathy McKay says Windsor's economy depends on FCA's assembly plant in Windsor. 0:43 Kathy McKay has been with Fiat Chrysler for 24 years and works on the second shift. She said she's never seen job losses like this. "We even weathered the third shift surviving the bankruptcy," she said, referring to the layoff of 1,000 workers when Chrysler declared bankruptcy in 2009. "We've been through hard times before without losing the third shift. It's a complete shock to me that finally it's come to this."<doc-sep>Premier Doug Ford says his government will “fight tooth and nail” to protect auto jobs in Windsor, after Fiat Chrysler Automobiles announced it plans to cut the third shift at its assembly plant in Windsor. “In the face of this extremely disappointing announcement from Fiat Chrysler, our government will not waver in our support for the thousands of men and women that go to work in Ontario’s auto sector every day,” Ford said in a statement on Thursday. “I want the employees at the Windsor Assembly Plant to know that my government stands with you and your families. We will fight tooth and nail to protect the jobs of the auto workers in Windsor.” The plant, which produces the Chrysler Pacifica and its hybrid version, as well as the Dodge Grand Caravan, has about 6,100 employees. Approximately 1,500 jobs will be eliminated in the Sept. 30 move the company said will better align production with global demand. Unifor Local 444 president Dave Cassidy said in a statement that the decision was unexpected, and the union will need the support of all levels of government moving forward. “I was shocked and very disappointed that FCA has announced today the elimination of the third shift at Windsor Assembly Plant effective September 30th, 2019,” he said. “Our members at the Windsor Assembly Plant with the support of our Feeder Plants continue to build the very best product throughout the FCA corporation. We will continue to meet with the company on alternatives of new products. We will need the support of all levels of government as we move forward.” Ford says Fiat Chrysler shouldn’t make its decision based on what he called the anti-business policies of the former Liberal government. “Our government is lowering taxes, lowering electricity rates and slashing red tape. There has never been a better time for auto manufacturers to invest in the province of Ontario,” the premier said. The planned cut in Windsor comes as Ontario’s auto sector is already reeling from General Motors’ plans to end production at its assembly plant in Oshawa by the end of the year at a loss of about 2,600.<doc-sep>
Fiat Chrysler Automobiles Canada is eliminating a third shift at its automotive plant in Windsor, Ont., impacting 1,500 jobs. The company said it’s cutting back to two shifts at the plant starting on Sept. 30. “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,” Fiat Chrysler said in a statement. The plant, which produces the Chrysler Pacifica, the Chrysler Pacifica Hybrid and the Dodge Grand Caravan, employs 6,104 workers, according to the FCA website. The plant began making minivans in 1983 and switched to working in three shifts 10 years later. Unifor Local 444 President Dave Cassidy told reporters on Thursday the move back to two shifts is “devastating for everybody.” “We are going to keep pressure on FCA on product and fully utilize our facility. We’ve notified the company that we want to meet immediately with Mike Manley, the CEO of FCA,” he said. “We are going to do everything possible to make sure that we maintain three shifts at (the) Windsor Assembly Plant.” Unifor national president Jerry Dias echoed Cassidy’s shock for FCA’s decision to scale back to two shifts. “I am deeply concerned about the 1,500 plus families, the community of Windsor (and) the (Canadian) auto industry,” Dias wrote in a tweet. “(Unifor) has demanded an urgent meeting with (FCA) to address.” When asked about Mayor Drew Dilkens’ prior comments on the need to diversify the region’s economy, Cassidy gave an emotional critique of the mayor and his perceived lack of communication with the union. “F--- Drew. Seriously.” he said. “I have reached out to Drew Dilkens so many times. I have tried to bridge a gap there. The election is over. Drew Dilkens can’t take his finger off. We have two crown jewels in this city right tied to this local, Windsor Assembly Plant and Casino Windsor. Drew Dilkens needs to pay attention to this." Dilkens did not immediately respond to a request for comment. Ontario Premier Doug Ford said in a statement that the provincial government “will not waver in our support” for auto sector workers. “I want the employees at the Windsor Assembly Plant to know that my government stands with you and your families,” Ford said in the statement. “We will fight tooth and nail to protect the jobs of the auto workers in Windsor.” Ford said he plans to meet with FCA Canada president Reid Bigland and Unifor president Jerry Dias to discuss ways to protect jobs at the plant. “We remain steadfast in our support for Ontario’s auto manufacturing sector, but more importantly we remain steadfast in our support for the autoworkers both in Windsor and province-wide,” he said. Ontario NDP Leader Andrea Horwath is calling on the provincial government to “step up” to keep Ontario’s auto sector strong. “We can be a world-leader in manufacturing the cars of the future for generations to come, but it won’t happen by accident,” she said in the statement. “Tens of thousands of Ontario jobs in auto, auto parts and spinoff industries, are at risk if the province fails to take action.” Earlier this week, FCA announced it was shuttering the Windsor plant -- and another one in Brampton -- for weeks in April amid softening sales. Cassidy said when the two-week shutdown was announced, there was no indication this news was coming. On Feb. 26, FCA announced plans to invest US$4.5 billion to build a new assembly plant in Michigan and renovate four others in the state, while creating 6,500 jobs in the process. Sad news of the third shift being cut, which will cost 1,500 people their jobs. I’m thinking of their families and colleagues tonight as the community comes to grips with this news. We simply must make Canada an attractive place for business to grow and create jobs. https://t.co/S3DMt06f46 — Andrew Scheer (@AndrewScheer) March 29, 2019