Automotive News Canada - May 2022 - 31

* MAY 2022
31
A $3.6-billion sigh of relief for Windsor, Brampton
CONTINUED FROM PAGE 1
Windsor plant in addition to its current
Chrysler Pacifica and Chrysler Voyager,
the latter of which is called the Grand
Caravan in Canada.
After the announcement, Mark Stewart,
Stellantis' COO for North America, told
reporters that the Pacifica will continue to
be produced in Windsor after the vehicle
receives a scheduled overhaul in 2028.
While Stewart
declined to say what
will be assembled
alongside the minivan
in Windsor, Fiorani
said the new product
will be a Jeep but he
did not point to a specific
model.
" It's due out in
late '25, and it will be
electrified, probably
hybridized and possibly
electric, " he said.
Unifor Local 444
President Dave
Cassidy, who represents
unionized
workers in Windsor,
said in a statement:
" We are in the middle
of the biggest revoluan
initial annual capacity of 200,000 vehicles,
the company said.
THREE SHIFTS AT BOTH PLANTS
Stewart said Brampton and Windsor
will return to three-shift operations. They
currently run two shifts.
Up until now, there's been a
black cloud over Brampton.
... We're going in the right
direction. We want to be
part of the future, and this
positions us perfectly.
DANNY PRICE
President, Unifor Local 1285,
representing Brampton plant workers
tion in the auto industry since the conception
of the assembly line in 1913. Ontario is
well-placed to play an essential role in the
new motoring revolution. "
A similar upgrade will take place at
Stellantis' Brampton Assembly Plant,
which currently builds the Chrysler 300
and the Dodge Challenger and Charger.
At that factory, Stellantis said, it will
install a flexible assembly line capable
of producing battery-electric and hybrid
vehicles. The modernized plant will have
Until the announcement, the Brampton
plant had no assurance of product after
2024. Despite industry speculation the
plant might be shuttered, Stewart said he
never gave up hope.
" They've not been on
their last legs, " he said
of the factory. " On an
11-year-old platform,
[the Challenger] beat
the Ford Mustang, and
[it] beat everyone in
the market [last year
in sales]. . . . I'm very
proud of that plant and
very proud of the Dodge
brand.
" It makes sense for
us to allocate product to
Brampton. "
Stewart declined to
say whether production
of the current vehicles
would stay in Brampton.
The expectation is that
replacements will be
electric and built in the United States.
Fiorani of AFS has not firmed up his
forecast for what vehicle will be going into
Brampton.
" This new investment does not necessarily
have a product assigned to it, " he
said.
Potentially, Fiorani said, it could be
an electric van similar to what General
Motors is assembling at its CAMI
Assembly Plant in Ingersoll, Ont.
" If you were to move production of the
During his May 2 news conference, Stellantis' North American COO Mark Stewart
said the new vehicles planned for the Windsor and Brampton assembly plants will
allow both factories to resume three-shift operations. PHOTO: STELLANTIS
van from Mexico up there, then it would
give you additional room for Ram trucks
down in that region, " Fiorani said.
SUPPLIERS 'NOW HAVE A FUTURE'
Unifor Local 1285 President Danny
Price, who represents workers in
Brampton, is relieved.
" Up until now, there's been a black
cloud over Brampton. We've been lobbying
hard at all levels of government, and this
is just amazing. We're going in the right
direction. We want to be part of the future,
and this positions us perfectly. "
Flavio Volpe, president of the
Automotive Parts Manufacturers'
Association,
is " a big fan of
Brampton. "
" I've bought
four cars built at
that plant - and
the most expensive
ones, " he said of the
Challenger. " I've bet
on that plant. "
While Volpe had
been " very concerned "
about the
future of Brampton,
he now is optimistic
about its longevity.
" I'm so happy
Volpe: " Big fan "
of Brampton plant
and was " very
concerned " about
its future.
FILE PHOTO
Until the $3.6-billion announcement, the Stellantis plant in Brampton had no
product mandate beyond 2024. It currently builds the Chrysler 300 and the Dodge
Charger and Challenger. PHOTO: STELLANTIS
about the Brampton announcement. If
you had asked me six months ago, or
even three months ago, if I thought this
would happen for Brampton, I would
have said 'no.' "
About 12,000 people work at suppliers
that feed parts to the plant.
" They now know they have a future, "
Volpe said.
Prabmeet Sarkaria, a Conservative
member of the provincial Parliament for
Brampton South, said in a statement that
" today's investments continue to build
tomorrow's innovations. "
WINDSOR HUB WILL SERVE ALL STELLANTIS
Stellantis also said it will modernize its
Automotive Research and Development
Centre in Windsor by expanding and
building two new facilities.
" The Electric Vehicle and Battery Pack
Testing Centres of Competency will establish
Ontario as a major R&D hub for the
company across all stages of production,
from design to development, " Stellantis
said in a statement.
The centres also will provide " major
opportunities for local talent, universities,
colleges and startups to participate in the
development of Ontario's EV ecosystem, "
the automaker said.
The hubs will be central to Stellantis'
R&D operations in North America and
" serve the company's worldwide needs for
technology, process and product development, "
the company said.
Windsor will become Stellantis' EV
battery research hub for North America,
Stewart said. The new centres will create
650 jobs, mainly software and design engineers.
- ANC
-With files from David Kennedy
Savvy consumers are 'shopping their cars around' for the best trade deal
CONTINUED FROM PAGE 1
better than their counterparts...
with [prices of] subcompact cars
leading the way up 10.1 per cent
in the quarter.
" We also start to see them [consumers]
kick the tires of electric
vehicles. "
All this means dealers need
to shift their strategies from
pre-pandemic times, Hancock
said.
" Dealers have to be getting
creative on how they're acquiring
cars, and also, paying a bit
more. "
Scott Greer, director of
used-vehicle services at
Winnipeg-based Birchwood
Automotive Group, which operates
21 dealerships in Manitoba,
Saskatchewan and North Dakota,
said the inventory crunch has
shifted how franchised dealerships
stock their lots.
ONLINE PLATFORMS HAVE AN EDGE
Greer said dealers need to
focus heavily on securing strong
trade-ins, as auctions and private
sales aren't providing
enough vehicles to support profitability.
" So,
the digital-only formats
[Canada Drives, Clutch] will
have acquisition advantages
there, thus leaving the OEM
bricks-and-mortar stores to manage
the trade win as a percentage
of retail volume, " he said.
Those digital format operators
buy cars directly from consumers,
offering an online portal
where owners can enter the
VINs and receive a binding offer
to buy the vehicle.
Cody Green, founder and
co-CEO of Canada Drives, which
operates in British Columbia,
Alberta, Saskatchewan and
Ontario, said he believes the
online model is the eventual
future of the used-car industry.
" Demand [for online transactions]
is increasing month over
month, " he said. " I do think it's
something that's going to influence
the industry at large. "
Hancock said the premium on
used-vehicle pricing is also causing
a change in how consumers
sell their vehicles to maximize
their return.
" Consumers are smart, wellaware,
well-informed and they're
looking to maximize the value
for that car and their equity position
on that car, " he said. " So,
they're also shopping their cars
around to other dealerships to
see if somebody is willing to pay
more. "
Hancock said the high prices
on some used vehicles are even
enough to drive sales of premium
cars. " It gives them that opportunity
to reach up to the next level
and buy a bigger car or a more
luxurious car. " - ANC
Greer: Online
retailers have
a competitive
edge when
it comes to
acquiring
used vehicles.
SUPPLIED PHOTO
Automotive News Canada - May 2022

Table of Contents for the Digital Edition of Automotive News Canada - May 2022
