Chrysler Would Be Hit Hardest In CAW Strike

Derek Kreindler
by Derek Kreindler

With 25 percent of its manufacturing capabilities in Canada, Chrysler would be hardest hit in the event of a strike by the Canadian Auto Workers union.

An article in the Windsor Star outlining the upcoming negotiations between The Big Three and the CAW describes how Chrysler is most vulnerable to a potential strike by the CAW. Tony Faria, professor emeritus of business at the University of Windsor told the paper

“The minivan is still a very important product, even though the segment is down…For Chrysler, the minivan represents about 10 to 12 per cent of its global sales.”

The Chrysler minivans are built solely at the Windsor plant, meaning a strike would cripple one of Chrysler’s core products in both the U.S. and Canada. Faria also noted that

“Ford, however, wouldn’t have much to lose since it’s producing low-selling vehicles, such as the Edge and Flex, and GM could shift at least overflow production of its hot-selling Chevy Equinox to its plant in Spring Hill, Tenn.”

Of course, this is all assuming there even is a strike. The whole thing could be averted if negotiations between the automakers and the CAW goes well – which is up for debate. The automakers are pushing hard to bring labor costs down to U.S. levels, while the union is looking for wage increases and a cost-of-living-adjustment. Chrysler’s Sergio Marchionne has suggested alternatives, including profit sharing and other lump-sum deals in lieu of wage increases.

Observers, including Faria, feel that Chrysler will most likely be targeted first for negotiations (since the first deal reached with an automaker generally sets the tone for the other agreements), but GM may also emerge as a contender, since the CAW is looking to secure product guarantees for their Oshawa plant. GM CEO Dan Akerson recently claimed that Canada was the most expensive place in the world to build cars.

Derek Kreindler
Derek Kreindler

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  • 50merc 50merc on Jul 25, 2012

    Would a strike really have much adverse effects? Couldn't the striking workers live on unemployment and/or strike benefits? August seems like a nice month to go vacationing in the Canadian Rockies. As for Chrysler, don't they have one or two months of inventory on hand? Plus, this is the time of year for plant shutdowns for model year changeover.

  • GS650G GS650G on Jul 26, 2012

    Give Sergio a reason to move production elsewhere. Go ahead.

  • Dartdude The bottom line is that in the new America coming the elites don't want you and me to own cars. They are going to make building cars so expensive that the will only be for the very rich and connected. You will eat bugs and ride the bus and live in a 500sq-ft. apartment and like it. HUD wants to quit giving federal for any development for single family homes and don't be surprised that FHA aren't going to give loans for single family homes in the very near future.
  • Ravenuer The rear view of the Eldo coupe makes it look fat!
  • FreedMike This is before Cadillac styling went full scale nutty...and not particularly attractive, in my opinion.
  • JTiberius1701 Middle of April here in NE Ohio. And that can still be shaky. Also on my Fiesta ST, I use Michelin Pilot Sport A/S tires for the winter and Bridgestone Potenza for my summer tires. No issues at all.
  • TCowner We've had a 64.5 Mustang in the family for the past 40 years. It is all original, Rangoon Red coupe with 289 (one of the first instead of the 260), Rally Pac, 4-speed, factory air, every option. Always gets smiles and thumbs ups.
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