Grand Caravan For A Cross-over

An auto analyst believes Windsor has nothing to fear from Fiat Chrysler Automotive’s decision to stop building the Dodge Grand Caravan at the Windsor Assembly Plant.

Fiat Chrysler CEO Sergio Marchionne announced Tuesday production on the minivan would stop in 2016, but Dennis Desrosier thinks that opens up a new opportunity at Windsor’s plant, building the new cross-over vehicle. “Future growth is in cross-over vehicles,” he says. “Sergio has a cross-over vehicle in the works, and no place to build it. Clearing Caravan out of Windsor gives him a spot to build it.”

However, Desrosier says Windsorites shouldn’t anticipate an announcement for some time. “He wants a more competitive labour contract and that comes up in 2016,” he says. “But if he announces the cross-over for Windsor now, it takes away much of his bargaining power.”

Desrosier believes the company would be stupid to close any of its North American plants at this time. With the company tight on capacity in North America and sales predicted to grow to 21-million units in five years, he says Fiat Chrysler only stands to lose if it cuts its production lines.