Tech & Biz

Chrysler Cuts 1200 Jobs at Its Canadian Plant

by Blue Crush | March 4, 2009 at 10:26 pm

144 views | 22 Recommendations | 4 comments

Michigan based Auto giant Chrysler LLC has announced that it is cutting its entire third shift at it's minivan assembly plant in Windsor, Ontario indefinitely, affecting about 1,200 jobs.

The company said Wednesday these employees will be placed on indefinite layoff no sooner than June 24th.

"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 executive Frank J. Ewasyshyn.

The Windsor plant currently has 4,450 hourly workers making Dodge Grand Caravan and Chrysler Town & Country minivans.

In the United States, where the bulk of the Windsor plant's Dodge Caravan and Chrysler Town & Country vans are shipped, sales in February were worse than expected, falling 41% year-over-year.

"This news is devastating for the Windsor community, which already has the highest unemployment rate of any city across the country," said Rick Laporte, president of the Canadian Auto Workers local representing Chrysler's factory workers.

The Chrysler move is the second blow in as many days to southern Ontario's industrial economy. On Tuesday, U.S. Steel Canada announced a shutdown of former Stelco steelmaking operations in Hamilton and Nanticoke, affecting 1,500 jobs.

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Paschen

at 02:26 on March 5th, 2009

It is a miracle that Chrysler is still around as is. Sorry for those that lost their job though.

Chryslers Chef CEO received over 200 million last year alone.

PIM of SPAIN

at 02:44 on March 5th, 2009

Very sad, but unavoidable. Many more will follow I'm afraid. Mismanagement should not be rewarded and not with 200m!!!! In the past (70s/80s) in such events, 3 month salary was paid + a kick in the ass.

René

at 06:12 on March 5th, 2009

They need to start making cars and other vehicles that people want to buy. not the same-old same-old. Aren't they opening plants in Brazil and Mexico?

Blue Crush

at 06:56 on March 5th, 2009

Exactly, René! Here's an article about the latest Consumer Report, titled, If you're GM or Chrysler, that's gotta hurt.

"Consumer Reports now recommends 100 per cent of Subaru's vehicles, 95 per cent of Honda's, 89 per cent of Toyota's and 70 per cent of Ford's. At the other end of the spectrum, CR recommends just 17 per cent of GM's and none of Chrysler's."