Chrysler news

Chrysler Canada will shut down production and idle about 4,900 workers at its minivan assembly complex in Windsor for two weeks next month. Ken Lewenza, president of Local 444 of the Canadian Auto Workers, confirmed yesterday the company has informed the union that production will stop during the weeks of Jan. 14 and Jan. 21 at the three-shift operation.

Lewenza said he had expected last fall’s new generation of Dodge Grand Caravan and Chrysler Town Country minivans would lead to six-day work weeks, but the slowdown in the U.S. economy has reduced demand. They’ve indicated other adjustments in production are being contemplated in 2008, he said. That would mean further downtime or reducing line speed at the plant, he added.

Chrysler would not comment on Lewenza’s remarks or how much it will reduce North American production in the first quarter of next year. The parent company also idled a Detroit plant for two weeks and previously ordered temporary shutdowns of three pickup truck plants in the U.S. and Mexico. The company ended production of the Pacifica wagon at the Windsor plant recently but will start building a minivan for Volkswagen next year.

During the downtime next month, the 4,900 workers will be on temporary layoff and receive about 65 per cent of their gross pay through a combination of employment insurance and company supplementary unemployment benefits. Chrysler, which was taken over by Cerberus Capital Management during the summer, announced last month it would cancel one shift and about 1,100 jobs at the Brampton assembly plant early next year because of less demand for its rear-wheel drive models.