Fiat Chrysler Automobiles NV (NYSE: FCAU) is cutting 1,500 jobs at its minivan plant in Windsor, Ontario, citing falling demand for new vehicles throughout North America.
The Italian American automaker said it is canceling the third shift at its assembly plant in Windsor starting on June 29. The company is also phasing out the Dodge Grand Caravan, output of which will cease at the end of May.
The plant Windsor plant will continue to build the Chrysler Pacifica and Voyager minivans on two shifts a day, the company said in a written news release.
“This decision comes as the company works to align volumes with demand,” Fiat Chrysler said in its statement. “We will make every effort to place indefinitely laid-off hourly employees in open full-time positions as they become available based on seniority.”
Fiat Chrysler is also offering retirement packages to eligible workers. The automaker first announced in March 2019 that it would eliminate the third shift in Windsor at the end of September that year. Since then, the company has extended the deadline twice following negotiations with Unifor, Canada’s automotive labor union.
Fiat Chrysler has taken a series of actions to trim production across North America this year. It has twice idled the assembly lines at its Jeep Cherokee plant in Belvidere, Illinois, after cutting a production shift at the plant last May.
Fiat began Friday down 14 cents, or 1.1%, to $12.24.