Parts Makers Less Impacted By FCA Shift Elimination

The expected impact on the feeder plants may not be as significant as initially thought, following the announcement last week that FCA was eliminating the third shift at the Windsor Assembly Plant, according to the Auto Parts Manufacturers Association of Canada.

Estimates had been as many as 1,000 jobs being reduced at the various feeder plants combined.

But Association President Flavio Volpe says the decline of workers at those facilities isn't direct as the suppliers to FCA work on a very different model than the automaker itself.

"The fact that FCA decided that within their own facility to manage demand and inventory, that this was the best way for them to configure their production by eliminating a third shift doesn't have a linear impact, a linear relationship with the feeder plants," he says.

Volpe says the parts makers do anticipate a decline, but not at the same scale as at WAP.

He says parts makers are confident FCA is going to continue making the Pacifica and Grand Caravan.

"This is a company that's committed to a product and a program that has just been caught short by market performance of that product.  We expect that they're going to put everything that they've got internally to finding new channels for that product."

Volpe explains the feeder plants production is based on how many minivans are being assembled and that number isn't expected to decline as sharply.

He adds the incentives for zero emissions vehicles in the federal budget could mean as many as 25,000 more Pacifica Hybrid sales.