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For the second time in a week, another supplier-related strike has occurred, this time between the CAW (Canadian Auto Workers) and TRW. Unlike the far-reaching American Axle & Manufacturing strike with the UAW, the TRW dispute is isolated to the CAW Local 444 at Chrysler’s Windsor plant. Production has already been idled at the Windsor plant, which produces Chrysler’s Town & Country and Caravan minivans.
Similar production at St. Louis South has not been impacted, as it receives the necessary components from an unaffected source. Chrysler can offset lost production at Windsor with St. Louis South build, but only minimally, due to the one-shift operation at the plant and the plant’s focus on building mostly export-only models that differ slightly from North American-specific models.
Redesigned last summer, Chrysler RT minivans have been slow out of the gate with sales down 42% from year-ago levels as Chrysler curbs incentive spending and fleet sales. At the end of January, Chrysler had a combined average of 66 days’ supply from the Town & Country and Caravan. As with the American Axle & Manufacturing strike, we expect this to be a short-lived strike and one that Chrysler can weather for a short period of time in this weak market environment.
We will continue to monitor events and provide further updates as needed.
For questions, please contact Joe Langley,
Senior Market Analyst, North American Vehicle Forecasts,
at joelangley@csmauto.com or +1 248 465 2832