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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.

2017 Chrysler Pacifica scores near top on minivan mpg

The 2017 Chrysler Pacifica gets 28 miles per gallon fuel economy on the highway, 18 mpg city, and 22 mpg combined, according to the government's newly announced estimates. Those figures compare well to the 2016 Town & Country's EPA rating of 25 mpg highway, 17 mpg city, and 20 mpg combined. They also make the new minivan among the most efficient models in its class, although not quite the king. These fuel economy figures only apply to the 2017 Pacifica with the 3.6-liter V6, which makes 287 horsepower and 262 pound-feet of torque, and the nine-speed automatic. We will have to wait until the second half of the year to find out how the plug-in hybrid performs, but the brand believes at least 80 MPGe is possible. Chrysler also plans to make stop-start available later, which will increase real-world fuel numbers. Compared to the currently on-sale competitors, the 2017 Pacifica is among the top, but there are two clear rivals. The 2016 Honda Odyssey has EPA ratings of 28/19/22. Those figures match the Chrysler on the highway and combined, but beat it by one mpg in the city. The other challenger is the 2016 Nissan Quest at 27/20/23. The Nissan wins by two mpg in the city and one mpg combined, but the Pacifica wins by one on the highway. According to Fueleconomy.gov, the front-wheel drive Toyota Sienna and Kia Sedona match the Pacifica's 18 mpg city rating, but they can't beat its combined or highway numbers. Related Video: All-new Gasoline-powered 2017 Chrysler Pacifica Offers Unsurpassed Fuel Economy, Greener Ownership Experience 28-mpg highway unsurpassed in minivan segment; 12 percent better than model it replaces Combined-cycle rating of 22 mpg is 10 percent better Improved fuel efficiency contributes to nine-percent reduction in Global Warming Potential (GWP) All-new Pacifica's superior performance attributable to engineering enhancements, such as: Upgraded version of award-winning Pentastar V-6 TorqueFlite transmission; world's first minivan application of nine-speed automatic gearbox Best-in-class aerodynamics Aggressive weight-reduction strategies March 8, 2016 , Auburn Hills, Mich. - The all-new 2017 Chrysler Pacifica minivan has earned a highway-cycle fuel-economy rating of 28 miles per gallon (mpg) from the U.S. Environmental Protection Agency (EPA) – a benchmark unsurpassed by any minivan on the market. It is also 12 percent better than the vehicle Pacifica replaces.

The UAW's 'record contract' hinges on pensions, battery plants

DETROIT - After nearly four weeks of disruptive strikes and hard bargaining, the United Auto Workers and the Detroit Three automakers have edged closer to a deal that could offer record-setting wage gains for nearly 150,000 U.S. workers. General Motors, Ford Motor and Chrysler parent Stellantis have all agreed to raise base wages by between 20% and 23% over a four-year deal, according to union and company statements. Ford and Stellantis have agreed to reinstate cost-of-living adjustments, or COLA. The companies have offered to boost pay for temporary workers and give them a faster path to full-time, full-wage status. All three have proposed slashing the time it takes a new hire to get to the top UAW pay rate. The progress in contract talks follows the first-ever simultaneous strike by the UAW against Detroit's Big Three automakers. The union began the strike on Sept. 15 in hopes of forcing a better deal from each major automaker. But coming close to a deal is not the same thing as reaching a deal. Big obstacles remain on at least two major UAW demands: restoring the retirement security provided by pre-2007 defined benefit pension plans, and covering present and future joint- venture electric vehicle battery plants under the union's master contracts with the automakers. On retirement, none of the automakers has agreed to restore pre-2007 defined-benefit pension plans for workers hired after 2007. Doing so could force the automakers to again burden their balance sheets with multibillion-dollar liabilities. GM and the former Chrysler unloaded most of those liabilities in their 2009 bankruptcies. The union and automakers have explored an approach to providing more income security by offering annuities as an investment option in their company-sponsored 401(k) savings plans, people familiar with the discussions said. Stellantis referred to an annuity option as part of a more generous 401(k) proposal on Sept. 22. Annuities or similar instruments could give UAW retirees assurance of fixed, predictable payouts less dependent on stock market ups and downs, experts said. Recent changes in federal law have removed obstacles to including annuities as a feature of corporate 401(k) plans, said Olivia Mitchell, a professor at the University of Pennsylvania Wharton School and an expert on pensions and retirement. "Retirees want a way to be assured they won't run out of money," Mitchell said.