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Another blow for Canadian autoworkers: FCA to lay off 1,500 at Windsor

Fiat Chrysler says it will cut a third shift at its Windsor Assembly Plant in Ontario, meaning layoffs for 1,500 workers in response to softening sales of the Chrysler Pacifica minivan. Separately, FCA announced it was moving up the scheduled two-week shutdown at the plant by one week, to the weeks of April 1 and 8. It's the latest blow for blue-collar autoworkers in Canada, who have been rocked by the potential closure of GM's assembly plant in Oshawa, Ontario, after production of the Chevrolet Impala and Cadillac XTS ends later this year. It will be the first time since 1993 that FCA's Windsor plant has operated on just two shifts, but the shutdown that began this week marks the third time the plant has been shut down this year. The Detroit News reports that action at the Windsor plant would be effective Sept. 30. It quoted Dave Cassidy, president of Unifor Local 444, at a news conference late last week: "People's lives — 1,500 direct families — depend on us," he said. "We're going to do everything possible to make sure we maintain three shifts. Everyone knows our product in Windsor is No. 1, and if you want to build it right, you want to build it in Windsor." FCA says it's making the cutback to better align production with demand. Through the first two months of 2019, U.S. sales of the Pacifica were down 24 percent to 14,817, with sales of the Grand Caravan, which is also built in Windsor, down 27 percent to 19,634. For the full-year 2018, Pacifica sales were flat at 118,322, while Grand Caravan sales rose 21 percent to 151,927. In Canada, the Pacifica saw a 3 percent drop in 2018 to just 5,999. FCA says it plans to offer retirement packages to eligible employees and will try to place laid-off hourly workers in open positions elsewhere as they become available. The company in February announced plans to invest $4.5 billion across the river to build a new assembly plant in Detroit and expand production at five other local plants in a move that will see it create 6,500 new jobs, pending certain assistance from the city of Detroit. The new Detroit plant will transform the existing Mack Avenue Engine facility into a production site for the next-generation Jeep Grand Cherokee and a new three-row Jeep SUV. That plan alone is said to involve 3,850 new jobs.

Chrysler Airflow Vision concept pairs today's platform with yesterday's name

Fiat-Chrysler has a number of notable announcements at this year's CES, including a formal announcement of its plug-in hybrid plans and branding, as well as the North American debut of the Fiat Centoventi concept. But it's also bringing something new and forward-looking to the show in the form of the slippery-looking Chrysler Airflow Vision concept. If that name sounds familiar to you, it's because the Airflow name was used on some streamlined and highly distinctive-looking Chrysler products of the 1930s. One thing both the old and new Airflows share is a slippery shape. The new Airflow is nothing but soft organic curves, looking like the automotive equivalent of Disney/Marvel robotic hero Baymax. It even has spats that cover the wheels, which are translucent to show off the big, copper-accented wheels underneath. While not unattractive, the modern Airflow does look a bit generic compared to the bold original, since so many modern EVs have a rounded rounded shape that's undoubtedly aerodynamic, but also unexciting. Maybe Chrysler should give it big hood strakes to evoke the stretched grille of the '30s Airflow. Peel away the pearly white exterior and you have a blend of future and contemporary technology. The interior shows off pedestal mounted seats swathed in suede and leather. The dashboard is minimalist and curvy like the exterior, and it features many screens as is the modern custom. In the center are dual displays for infotainment and climate controls like in an Audi. A small instrument screen sits ahead of the steering wheel, and the passenger gets a screen directly ahead of their seat. Chrysler says a unique feature will be the ability to swipe different menus and functions over to other occupants' screens so they can fiddle with things. Chrysler hasn't explicitly said what powers the Airflow Vision, but it makes mention of using the floor of the Pacifica Hybrid. It could share that van's powertrain, a hybrid V6 arrangement that might even preview the reported electrified all-wheel-drive version. We'll hopefully get more details on the powertrain after the reveal.

U.S. auto sales in April expected to drop despite big discounts

DETROIT — U.S. auto sales in April likely fell nearly 8 percent from the same month in 2017 despite big discounts for consumers, industry consultants J.D. Power and LMC Automotive said on Thursday. For much of the past two years, the discounts offered by automakers have remained at levels that industry analysts say are unsustainable and unhealthy in the long term. April U.S. new vehicle sales will likely be about 1.31 million units, down from 1.42 million units a year earlier, the consultancies said. The forecast was based on the first 17 selling days of April. Automakers, including Ford and Fiat Chrysler Automobiles, will release April U.S. sales results on May 1. Earlier this month, No. 1 U.S. automaker General Motors said it will stop reporting monthly U.S. sales because the 30-day snapshot does not accurately reflect the market. GM will instead issue quarterly sales reports. U.S. new vehicle sales fell 2 percent in 2017 to 17.23 million units after hitting a record high in 2016. Sales are expected to drop further in 2018 as interest rates rise and more late-model used cars return to dealer lots to compete with new ones. LMC expects full-year 2018 U.S. new vehicle sales to come in at around 17 million units. "Uncertainty and unfavorable factors appear to be mounting for autos, including a volatile stock market, rising interest rates, rising oil prices and potential trade roadblocks," Jeff Schuster, LMC's head of global vehicle forecasts, said in a statement. The seasonally adjusted annualized rate of sales for April will be 16.6 million vehicles, down more than 2 percent from 17 million units in April 2017, the consultancies said. Retail sales to consumers, excluding lower-margin fleet sales to rental agencies, businesses and government, were set to decline about 9 percent in April. The level of consumer discounts, which can erode profit margins and undercut resale values, "remains the larger concern," the consultancies said. The average discount was $3,698, up $187 from April 2017. Discounts on trucks and SUVs were up $426, but down $226 on passenger cars. Reporting by Nick CareyRelated Video: Image Credit: Reuters Earnings/Financials Chrysler Ford GM JD Power