Chrysler threatens to pull out of Canada
Associated Press
OTTAWA -- A Chrysler executive issued a grim threat to Canadian lawmakers, warning the struggling U.S. automaker may shut down its plants in Canada if it doesn't get significant labor concessions and government aid.
"Chrysler LLC cannot afford to manufacture products in a jurisdiction that is uncompetitive, relative to other jurisdictions," President Tom LaSorda told a Parliamentary committee Wednesday night.
Chrysler's labor costs in Canada work out to about 20 dollars an hour more than automakers such as Toyota and Honda, LaSorda told the committee.
"Currently Chrysler CAW (Canadian Auto Workers) are not competitive," he said.
The automaker also asked for roughly U.S. $2.3 billion dollars from the Canadian and Ontario governments and demanded relief in a tax dispute with Ottawa. The company has about 9,000 employees in Canada.
"Failure to satisfactorily resolve these three factors will place our Canadian manufacturing operations at a significant disadvantage relative to our manufacturing operations in North America and may very well impair our ability to continue to produce," LaSorda said.
Chrysler LLC and its Canadian subsidiary have been hit particularly hard by the slump in auto sales. Chrysler's Canadian sales were down 27 percent in February compared with a year earlier.
General Motors Canada, which has also asked for billions in government aid amid slumping sales, reached a new agreement with the Canadian Auto Workers union last weekend, providing labor cost concessions. Workers approved the deal in voting on Tuesday and Wednesday.
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