Model cuts not likely to cost jobs
 

Model cuts not likely to cost jobs
TheStar.com - Business - Model cuts not likely to cost jobs

October 19, 2007
Tony Van Alphen
Business Reporter

Chrysler will probably dump two models from production in Canada, but union officials say it likely won't cost any shifts or jobs here.

The Chrysler Pacifica and Dodge Magnum wagons, which are built in Windsor and Brampton respectively, face the end of the line during the next year because of falling demand, according to reports.

However their sales volumes are not high enough to jeopardize third shifts at the Windsor and Brampton assembly plants, which build other popular models, union leaders said yesterday.

"On top of that, we have the new Challenger coming in here which will easily replace the Magnum's volume and more if they decide to cut it," said Vince Bailey, president of Local 1285 in Brampton.

There have been rumblings on the floor of the Brampton plant for months that Chrysler will cease production of the gas-guzzling Magnum because of flagging sales.

Magnum production slid 25 per cent to 38,046 in 2006. In the first half of this year, output tumbled another 40 per cent. The Brampton plant also assembles the Chrysler 300 and Dodge Charger cars.

Pacifica sales have also fallen significantly and production was pared in Windsor. Output plunged almost 30 per cent to 72,890 in 2006 and fell 23 per cent in the first half of this year.

But Chrysler has just launched a new generation of the Dodge Caravan minivan that should bolster production numbers and maintain a third shift in Windsor.

Industry sources said Chrysler is still considering the possibility of building a minivan for Volkswagen in Windsor.

The Wall Street Journal reported earlier this week that several Chrysler models are likely to go out of production including the PT Cruiser convertible, Jeep Compass, Magnum and Pacifica.