Fiat Chrysler Automobiles NV stated on Thursday it will cut one shift at its Windsor, Ontario, assembly plant where it constructs minivans, which will lead the loss of 1,500 jobs.
The automaker stated the elimination of the shift, that will take effect on September 30, was to address declining global demand.
The automaker stated it would provide retirement packages to eligible workers and attempt to place indefinitely laid off hourly workers in open full-time positions. Previously this week, Canadian media outlets reported Fiat Chrysler would idle the plant for two weeks in April, the third time this year the plant has been temporarily shut down.
The company has sold over 12 million minivans, since being introduced by Chrysler in 1983. It sold over 500,000 annually by the early 1990s.
During the last decade, sales dropped as many automakers stopped constructing minivans altogether and more U.S. consumers gravitated toward sport utility vehicles.
In 2018, Fiat Chrysler sold 270,000 Chrysler Pacifica and Dodge Grand Caravan minivans in the US. Through February, the company’s U.S. minivan sales have dropped by about 25 percent.