VW Negotiates With Chrysler on Routan Minivans image

VW is negotiating with Chrysler regarding the future production of its Routan minivan, as the model’s output will stop for at least five months.

Beginning with July, Chrysler has stopped production of its Routan minivan at its plant in Windsor, Ontario. Now, VW and Chrysler plan to review their deal at the beginning of 2013, according to Dino Chiodo, president of the Canadian Auto Workers Local 444 in Windsor.

In 2006 VW agreed with Chrysler to make an alliance regarding the production of the Routan, which began two years later. This year, Fiat and Chrysler CEO Sergio Marchionne has clashed with VW CEO Martin Winterkorn as Europe’s auto market falls to a 17-year low.

“There truly hasn’t been a decision one way or the other” whether production of the Routan will continue in Windsor, said Scott Vazin, a Volkswagen spokesman.

During the first eleven months of this year, Chrysler has manufactured 8,662 Routan minivans, with 38% less compared with the same period last year. On the other hand, production of the Dodge Grand Caravan increased 21% to 185,613 units and the Chrysler Town & Country and Lancia Grand Voyager were up 15%, to 119,530 units.