Stellantis has announced that it will reduce its Windsor assembly plant to one shift next spring, which will result in the loss of approximately 1,800 jobs.
The company, formerly known as Fiat Chrysler Automobiles, says the move comes as the auto industry faces significant headwinds, including the semiconductor shortage and the effects of COVID-19.
The two-shift cut comes after Stellantis cut the minivan plant’s third shift in 2020, resulting in a loss of around 1,500 jobs.
Stellantis said it would cut the second shift starting in the spring, but reaffirmed its commitment in the 2020 collective agreement with local union Unifor to spend more than $ 1.5 billion at the plant.
The auto industry is grappling with a significant shortage of computer chips, leading automakers to prioritize high-margin vehicles like pickup trucks and SUVs and cut back on the production of sedans and minivans.
The Windsor plant produces the Chrysler Pacifica, the Chrysler Voyager and the Chrysler Grand Caravan.
Official statement from UNIFOR Local 444
“The company gave the union official notice late this afternoon that it was moving to one-shift operation at the Windsor assembly plant on April 17, 2022. We will be meeting with the company in the next few days to explore ALL of the other options, but official notice has been given. The company reiterated its commitment to negotiated investment and three-shift operation going forward. We will have more details over the weekend and the next few days. “
Official statement from Stellantis
“The global auto industry continues to face significant headwinds such as the persistent shortage of semiconductors and the lingering effects of the COVID-19 pandemic. In response to these factors, Stellantis will adjust production operations at its Windsor Assembly Plant (WAP) in Canada. In spring 2022, WAP will transition to a one-team operation. The company reaffirms its WAP investment commitment described in the 2020 collective agreement up to C $ 1.5 billion.
—With files from Angelo Aversa of CTV Windsor