FCA To Idle Some Assembly Plants Amid Declining Minivan And SUV Sales
Two Fiat Chrysler Automobiles (FCAU) assembly plants will reportedly be idled for two weeks as the automaker saw its minivan and SUVs sales drop.
According to The Detroit News, FCA will idle down its Windsor Assembly plant in Ontario, Canada, where the Chrysler Pacifica and Dodge Grand Caravan minivans are produced from Jan. 13 to Jan. 20. The news outlet also said the company will also idle its Belvidere Assembly plant in Illinois, where the Jeep Cherokee SUVs are produced during the same timeframe.
Fiat Chrysler Automobiles confirmed the news, saying that it was aligning “production with demand. Both plants are reportedly expected to be operational again the week of Jan. 27.
FCA said saw its minivan business decline for 2019, despite a 3% increase in Pacifica models sold. In response, the third shift at the Windsor Assembly will be cut in March, affecting 1,500 workers, the news outlet said.
The automaker saw a 30% decrease in U.S. sales of the Jeep Cherokee year-over-year.
FCA will also “take a few down days” at its Saltillo Truck Assembly and Toluca Car Assembly plants in Mexico sometime this month, Jodi Tinson, a company spokeswoman, told The Detroit News. Fiat Chrysler produces the Ram Classic and heavy-duty picks at the Saltillo plant and the Dodge Journey and Jeep Compass SUVs at the Toluca plant.
Shares of Fiat Chrysler Automobiles stock were down 0.28% as of 12:05 p.m. EST on Friday.
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