Canada Plant Return to Full Production

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Chrysler plant to return to full production

Tuesday, November 24, 2009

The Chrysler minivan plant in Windsor, Ont., will return to full production on Dec. 7, according to a union leader.


The Chrysler minivan assembly plant in Windsor, Ont., will return to full production on Dec. 7, returning the plant's 4,600 workers to three eight-hour shifts.The Chrysler minivan assembly plant in Windsor, Ont., will return to full production on Dec. 7, returning the plant's 4,600 workers to three eight-hour shifts. (Canadian Press)

Chrysler cut output at the assembly plant by half a shift in June. That meant the 4,600-worker factory operated 20 hours per day rather than 24 in a "kind of a sharing program," according to Rick Laporte, president of Canadian Auto Workers Local 444.

"They may send home the afternoon shift today and the day shift today," Laporte said. "Tomorrow they may send the midnight shift home and one of the other shifts. They've been sharing that downturn over three shifts."

As a result, Chrysler is producing 1,226 Dodge Grand Caravans and Chrysler Town and Country minivans per day. When the third full shift resumes, workers will be able to produce 1,426 vehicles per day.
Suppliers also affected

Chrysler's decision to return to full production will benefit suppliers which have also had to cut shifts to reduce production.

Managers at HPBO, which assembles radiators, headlights and bumpers, had cut its plant's 24-hour workday into two eight-hour shifts and a four-hour shift, with no rotation of shifts. That made it especially hard for the four-hour workers, Laporte said.

"After a couple of months, you have a hard time paying your bills at the end of the day," he said.

Chrysler announced the reduction in early March, shortly after announcing its Canadian sales dropped 27 per cent over February 2008.

In October, however, the Dodge Grand Caravan and Chrysler Town and Country had combined Canadian sales of 3,930, up 21 per cent over 2008, capturing nearly three–quarters of the country's minivan segment, according to a company report.
ARTICLE LINK: CBC News - Windsor - Chrysler plant to return to full production

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Extra downtime for six Chrysler plants

December 6, 2009



Two Canadian assembly facilities affected as car maker's decision differs with the ramping up of production by its competitors

Chrysler Group LLC is shutting its two Canadian assembly plants and four other North American assembly plants for extra downtime this month and in January after a dismal sales performance in November, in stark contrast to big production increases at Ford Motor Co. and General Motors Co.

The shutdowns at Chrysler's Brampton and Windsor plants in Ontario include the three days before Christmas and the first two weeks of January.

A pickup truck plant in Warren, Mich., will shut for almost a month, while one factory in Belvidere, Ill., and two in Toledo, Ohio, will close three days early for the Christmas break and will stay shut the first week of January, said industry sources familiar with Chrysler's production plans.

The cutbacks come after a 25 per cent drop in the company's sales last month from year-earlier levels, which was actually better than the 38 per cent decline in the first 11 months of 2009.

Ford said last week that it will boost first-quarter production by 58 per cent, while GM announced a 75-per-cent jump.

Chrysler spokesman Max Gates said the holiday break will begin early at some plants and will be extended at others.

Chrysler has vowed to keep inventories under control, reduce profit-sapping incentives, and refresh or redesign 75 per cent of its product offerings by the end of next year under its new owner, Fiat SpA.

That plan will lead the company to break even in operating profit next year and on a final profit basis in 2011, the company reiterated.

But those financial numbers are underpinned by expectations that Chrysler will reverse its U.S. market share losses and jump to 13 per cent of the market by 2014 from less than 9 per cent this year.

That's a tall order, with a recovery in market share doubtful next year because of few new Chrysler vehicle offerings and only a slow rebound expected in the market, analysts said.

“We're talking about a soft market and extreme competition,” said William Pochiluk, president of consulting firm AutomotiveCompass LLC.

“Chrysler has a rather aged set of products in the most popular segments,” Mr. Pochiluk said.

The three cars made in Brampton, the Chrysler 300, Dodge Charger and Challenger, slumped 44, 38 and 39 per cent respectively last month.

Rick Laporte, president of local 444 of the Canadian Auto Workers union, which represents about 4,500 workers at the Windsor minivan plant, said he was told that the shutdown is related to retooling and upgrading equipment, not a sales slump.

The Dodge Caravan and Chrysler Town and Country minivans were two of the auto maker's better performers last month with an increase of 35 per cent in Caravan sales and a dip of 3 per cent in Town and Country deliveries.

Chrysler said last month when it laid out a five-year product and financial plan that the two vehicles will receive major modifications in 2010.

But they will be up against redesigned Honda Odyssey and Toyota Sienna minivans, including a Sienna with a four-cylinder engine, the first time Toyota has offered an engine smaller than a V6 in its minivan and an indication that the fuel economy race is heating up.


LINK: Extra downtime for six Chrysler plants - The Globe and Mail

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Canada auto assembly employment sinks to 1963 level


* 7,000 assembly jobs shed by end of September

* Auto parts sector sheds 18,000 jobs, now at 1983 level

* Vehicle dealers fairing better, employment down 3 pct

TORONTO, Dec 7

Employment in Canada's vehicle assembly sector in the third quarter fell to its lowest since 1963, according to statistics released on Monday by DesRosiers Automotive Consultants Inc.

LINK: Canada auto assembly employment sinks to 1963 level | Reuters

The deep downturn in the auto sector forced both General Motors Co [GM.UL] and Chrysler to restructure under bankruptcy protection and automakers around the world to slash production and shutter plants.

Canada and the province of Ontario ponied up billions of dollars to help GM and Chrysler survive, and the Canadian Auto Workers union agreed to steep concessions, in return for promises to keep Canadian jobs.

Still, the assembly sector shed about 7,000 jobs between January and the end of September, and is down by over 20,000 jobs from its peak in 2000.

"Forty four years of employment growth wiped out in a matter of months," said Dennis DesRosiers, president of the consulting firm. "Quite unbelievable."

He said the only good news was that the employment decline in the sector slowed to 10.7 percent, while earlier in the year it was declining by over 20 percent month over month.

"They are still declining though and are unlikely to show an increase in any of the final three months."

At the end of September, there were 35,549 workers assembling vehicles in Canada.

DesRosiers said some of the jobs would be restored as consumers come back to the market. "But some are structural as well with the closing of plants by GM, Ford <F.N> and Chrysler and are gone for good."

The auto parts sector was down to 61,300 jobs year-to-date in September, the lowest since 1983 when effects of the second oil embargo hit the automotive sector.

The parts sector lost 18,000 jobs this year up to September, and close to 40,000 jobs from its peak of about 100,000 in 2001.

"So collectively the manufacturing side of the automotive sector is down by about 27,000 jobs this year and about 57,000 jobs from its peak at the beginning of this decade," said DesRosiers.

He said vehicle dealers were fairing better than the manufacturing side of the industry. Their employment is down 3 percent in 2009.

"The vehicle dealers now employ about 40,000 more workers than the assembly and parts sector combined."

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Brampton Chrysler to avoid extended holiday shutdown

The Canadian Press



Updated: Tue. Dec. 8 2009 12:37 PM ET

TORONTO — The Chrysler plant in Brampton, Ont. will continue to operate its assembly lines while workers in Windsor, Ont., and four U.S. plants stay home for an additional three days of pre-Christmas downtime.

The Windsor plant, operating a full three shifts with 4,600 employees, will close the three days before Christmas and the first two weeks of January.

The plant in Brampton, where some 2,800 people work, will close the first two weeks of January, as previously announced, said Leon Rideout, president of Canadian Autoworkers union local 1285 in Brampton.

But after reports it would see an additional down time, he called the company and said he was told the plant would not close before Christmas.

"I called the plant and they said 'why would we shut down three days when we're actually working a couple Saturdays in December?''' he said.

He added there will be two extra down weeks in January at the plant for scheduled upgrades and retooling.

Chrysler spokesman Max Gates said some plants would experience extra downtime, but would not say which ones or for how long.

"We are very firm in our intention to not build vehicles unless there is demand for those vehicles,'' he said. "We're going to be very rigorous in matching up our production with demand for vehicles.''

He added that it also gives the company an opportunity for maintenance work.

A factory in Illinois and two in Ohio will close three days early for the Christmas break and remain closed the first week of January. And a pickup truck plant in Michigan will shut for almost a month.

Meanwhile, Ford and GM announced last week they would boost first-quarter production.

Year-to-date, GM is in first place in terms of market share, Ford is in second place, Toyota is third and Chrysler is fourth.

Chrysler has vowed to keep inventories under control, reduce incentives, and refresh or redesign 75 per cent of its vehicles by the end of next year under its new owner, Fiat SpA.

The chief executive of Chrysler Group said Monday the automaker's recovery will be gradual, but the company is making progress following its speedy government-led bankruptcy.

Sergio Marchionne said Chrysler broke even in September and is committed to a five-year plan to overhaul its vehicle lineup and double sales.

Fiat took a 20 per cent controlling share in Chrysler after the company emerged from bankruptcy protection in the U.S. and received billions of dollars in aid from the U.S., Canadian and Ontario governments.

LINK:CTV News | Brampton Chrysler to avoid extended holiday shutdown

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Brampton production schedule is clarified

Posted on Wednesday, December 9th, 2009 at 4:06 PM EST.(Employee News)

Due to media inquiries, Chrysler Group LLC is clarifying the upcoming schedule for the Brampton Assembly Plant. The plant will shut down for the holiday break beginning Thursday, December 24. Normal operations will resume January 18, 2010.