Fiat Chrysler has temporarily cut pay by 20 per cent for salaried workers
A Canadian auto expert is describing the impacts of COVID-19 on the auto sector as “devastating.”
There are 200,000 manufacturing jobs in Canada connected to the auto sector and another 600,000 to 700,000 non-manufacturing jobs with dealerships, repair shops and financing.
"The difference between the auto sector and the other sectors that are hard hit like the entertainment sector, restaurants, hotels is that the auto sector is one of the best paid sectors in this country," says auto analyst Dennis DesRosiers.
Speaking on AM800's the Morning Drive, DesRosiers says up to 90 per cent of people on the manufacturing side are laid-off while 70 per cent on the non-manufacturing job are without a job right now.
He says if vehicles aren't on the road, people aren't buying.
"People aren't driving, they don't the repair, don't need to buy and until this gets to normalcy and people start to drive then the auto industry will come back."
Right now, DesRosiers says Canada is losing 40,000 to 50,000 vehicle sales a week.
Fiat Chrysler has temporarily cut pay by 20 per cent for salaried workers and DesRosiers says given the situation, pay cuts are better than no job.