Chrysler minivan plant in Windsor to be idled for parts shortage..

[Stijloor]

Friends,

Chrysler minivan plant in Windsor to be idled for parts shortage. :mg:

Automotive News -- January 28, 2011 - 12:14 pm ET

DETROIT -- Chrysler Group's Windsor Assembly Plant in Ontario will close next week because of a parts shortage, a company spokeswoman confirmed.

The plant, which produces the Dodge Grand Caravan, Chrysler Town & Country, and Volkswagen Routan minivans, will begin the shutdown Monday morning.

About 4,400 workers on three shifts will be affected in addition to 5,000 workers at feeder plants, said Rick Laporte, president of Canadian Auto Workers Local 444.

He said Windsor plant employees should receive 65 percent of their normal pay during the closure, but the other workers will need to rely on unemployment benefits from the Canadian government.

Laporte said the plant is closing because of several parts or raw materials shortages. Laporte and another plant employee said aluminum materials from a Chinese supplier were among the shortages. Those materials are used in minivan hoods. Laporte said the plant has been having trouble with the supplier for about six months.

Chrysler spokeswoman Jodi Tinson declined to comment on the part or supplier.

Laporte said Chrysler first talked to the union last week about laying off one shift of workers in preparation for the shortage, but they decided to close down all shifts for a week.

“This is the first time we've seen layoffs in January in about eight years,” Laporte said. He said demand from dealers usually keeps production ramped up during January.

Tinson said Chrysler would not comment on how many vehicles the stoppage will affect.

Laporte said the plant produces 1,500 minivans per day, including 20 Routans for VW. The plant is expected to reopen Monday, Feb. 7.

The production shortage comes after U.S. sales of the Chrysler Town & Country increased 33 percent in 2010 over 2009, making it the top-selling minivan in the United States ahead of the Honda Odyssey. Dodge Grand Caravan sales rose 14 percent in 2010 from 2009, making it the third-most-sold minivan in 2010.

How about looking for suppliers closer to home????

Stijloor.

 

[Randy]

Friends,

Chrysler minivan plant in Windsor to be idled for parts shortage. :mg:

How about looking for suppliers closer to home????

Stijloor.

Yeah, we make a small amount of aluminum here in the states...and as usual the Candians follow our lead because they make it as well

 

[Marc]

<snip> How about looking for suppliers closer to home? <snip>

Price, probably. The first question I would have is how long have they had the supplier and what issues is the supplier having that is affecting delivery of product. We've all seen long time, 'normally' efficient suppliers who have gone through problems. I've seen plants idled in years past because of problems with a supplier in the US.

Of note also is they say in the article they have been having problems with the supplier for the last 6 months. Obviously Chrysler didn't have a contingency plan in place.

 

[Stijloor]

Price, probably. The first question I would have is how long have they had the supplier and what issues is the supplier having that is affecting delivery of product. We've all seen long time, 'normally' efficient suppliers who have gone through problems. I've seen plants idled in years past because of problems with a supplier in the US.

Of note also is they say in the article they have been having problems with the supplier for the last 6 months. Obviously Chrysler didn't have a contingency plan in place.

Chrysler is not the only one...and when the automotive industry makes a come back (the signs are positive), there are going to be major supply-chain problems.

The human resource side is another story and that does not look good either. In 2008-2009, an enormous brain drain took place.... How to catch up? We'll see.

Stijloor.