Low Demand Forces FCA To Temporarily Halt Production


Why doesn't anyone want to buy an FCA car?

Fiat-Chrysler is not in the best situation right now. Ram and Jeep sales are still as good as they can be, but FCA's other brands are really suffering. Automotive News is now reporting that FCA will idle two of its factories in Ontario, Canada for the first week of 2017. This is part of an effort to trim supplies due to low demand. FCA is not the only company having to idle factories however. General Motors just announced that it will pause five of its plants in Detroit, and Ford will halt production in Kentucky and Mexico.

FCA says production at the Windsor and Brampton factories will stop from January 3 to 6, following the New Year's Day holiday. The Windsor plant builds the Pacifica and Grand Caravan, while the Brampton plant assembles the Charger, Challenger, and 300. Jodi Tinson, a company spokesperson said that "the moves are to align production with demand." We have already seen that Fiat dealerships are struggling to stay open and other FCA dealerships claim that the company is lying about sales numbers in order to enforce unrealistic sales quotas. These bad sales figures may spell the end for several FCA brands in the US.

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We have been pleading to FCA for years now that the Chrysler and Dodge brands are in a desperate need of a refresh. Both brands are hurting for sales, and we have already laid out our plan to make Dodge more interesting with a range of sports cars. And after this year, Chrysler will only sell the Pacifica and 300, making it almost redundant. Pausing these factories may not be such a big deal because all three American automakers are also halting production. However, this is just one of many problems for FCA right now and there doesn't seem to be an end in sight.