CAW says Chrysler Canada will save 1,200 jobs

WINDSOR, Ontario - Chrysler Canada has canceled plans to end the third shift at its minivan plant in Windsor, Ontario, a decision that will save more than 1,200 jobs, the head of the Canadian Auto Workers union said Friday.

After months of bad news for the Canadian auto industry, Ken Lewenza said the announcement was a good news story for the hard-hit industrial border city in southwestern Ontario.

Windsor has been battered by the auto sector's restructuring, losing thousands of jobs from earlier streamlining at Chrysler, Ford Canada and General Motors Canada. Next year, GM plans to shut down a transmission plant in the city, cutting another 1,400 jobs.

Chrysler had announced in March that it would end the third shift at the plant, which produces the Dodge Grand Caravan and Chrysler Town & Country minivans.

The factory is Chrysler's only supplier of minivans since the automaker shut down production of the vehicles at two U.S. plants.

Reid Bigland, president and CEO of Chrysler Canada, noted the minivan has remained a winner for Chrysler.

"Demand for our minivans in the second half of 2009 has been steadily rising and this decision will allow us to meet that demand," Bigland said.

"Outside of all of the bad news, the minivan has been a success story by itself because of its popularity with consumers," he said.

Chrysler emerged from bankruptcy protection on June 11 under a new partnership with Fiat that will see the companies expand sales of fuel-efficient, small cars in North America.

The restructuring involved billions of dollars in financial aid from the U.S., Canadian and Ontario governments as well as labor, pension and other cost concessions from the United Auto Workers and Canadian Auto Workers unions.

Under the agreement brokered in the days leading up to Chrysler's bankruptcy filing, Fiat will receive up to a 35 percent stake in the automaker in exchange for sharing the technology Chrysler needs to create smaller, more fuel-efficient vehicles.

The United Auto Workers union will get a 55 percent stake that will be used to fund its retiree health care obligations, while the U.S. and Canadian governments will receive a combined 10 percent stake.

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