Auto giant Chrysler announced 1,200 layoffs and one of three shifts at its Windsor, Ontario, minivan plant, cutting about 15 per cent of its Canadian work force for the first time in more than 15 years.

"Given today's severe economic environment and continued lack of consumer credit, which has affected the minivan market as well, we cannot sustain a three-shift operation at Windsor," said Frank Ewasyshyn, Chrysler's executive vice-president of manufacturing, in a statement.

Ken Lewenza, national president of the Canadian Auto Workers, branded this event as a huge blow to the city of Windsor. He said that the cuts are going to affect workers with up to 13 years of service.

This announcement comes as a huge blow to Windsor whose economy is profoundly dependant on the automobile industry. It already has the highest unemployment rate of any major city in the country at 10.9 per cent. Next year it is expected to will suffer another blow with General Motors closing its transmission plant in the city and slashing another 1,200 direct jobs.