Chrysler withdraws $700M request for Ontario assembly plants

Chrysler Group LLC says it is no longer seeking government funding to expand operations

WINDSOR, Ont. – Chrysler Group LLC says it is no longer seeking funding from the federal and Ontario governments to expand its operations, but will continue with plans to begin manufacturing its new minivan line in Windsor, Ont.

The auto giant said it will also continue to invest in its Brampton, Ont., plant, which builds the Dodge Charger, Challenger and Chrysler 300.

Chrysler said government officials were notified earlier this week that it will be withdrawing its request for $700 million in reported subsidies.

According to a statement on Tuesday, the company said the proposed projects were being used as a “political football”.

“It is clear to us that our projects are now being used as a political football, a process that, in our view, apart from being unnecessary and ill-advised, will ultimately not be to the benefit of Chrysler,” it said.

“As a result, Chrysler will deal in an unfettered fashion with its strategic alternatives regarding product development and allocation, and will fund out of its own resources whatever capital requirements the Canadian operations require.”

Chrysler also cautioned that negotiations with the union will also play a factor in the decision.

“Of particular importance for this evaluation will be the outcome of our collective bargaining negotiations that will be carried out in 2016 with UNIFOR (the merged entity of the CAW and CEP),” Sergio Marchionne, the company’s chairman and CEO, said in the statement.

The comments come hours after Marchionne told a news conference at the Geneva auto show that he regretted how the request for government funding had become highly politicized.

“People think this is a matter of subsidizing industry — it’s not,” he said.

The auto giant has asked the federal and Ontario governments for subsidies, as part of an overall investment of $3.6 billion, to keep its production of the new Chrysler minivan in Windsor.

In January, it said it was considering a billion-dollar upgrade at its Ontario plant to build a new minivan, but it was in talks with the government about an incentive package that would help offset higher costs in Canada.

The Chrysler assembly plant in Windsor produces the Dodge Grand Caravan and Chrysler Town & Country minivans as well as several other vehicles.




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Chrysler withdraws $700M request for Ontario assembly plants

  1. Tim Whodat?

  2. “It is clear to us that our projects are now being used as a political football…” Really? Did they think they could try to relieve taxpayers of $700M without it becoming a political issue? Besides, by giving up on their pursuit of this subsidy, while still going ahead with the project, they are making a tacit admission that this whole thing was nothing more than a brazen extortion attempt. I do not relish seeing auto workers lose their jobs, but I’ll almost be relieved the day this third rate automaker goes under for good. They’ve been a subsidy pig ever since Reagan bailed them out in 1980, ushering in the disastrous era of big corporate bailouts. 34 years later, they remain a poster child for why corporate bailouts should not exist.

    • GM and Ford were bailed out too. And we’ll keep on doing it until we figure out how to replace them.

      • Ford wasn’t. I’ve proven you wrong on that several times now, yet you keep saying it.

          • Are you that stupid? Your bloomberg link identifies Ford as the only one of the big three not to get a bailout in the first sentence. You once again posted a link that undermined your own argument.

          • Donny I’ve simplified it just for you. Try the second paragraph of the Forbes article….and the other link.

          • Ford did not get a bailout. Ford did however, use government proffered low interest loans during the period of banking instability post-2008.

            Ford paid every penny of their loans back, with interest. GM and Chrysler however, cost taxpayers many billions of dollars.

          • You’ve just confirmed that Donny is right. The Forbes article says Ford took advantage of a $5.9 B loan to develop hybrids and electric cars. It was not a bailout to stave off immediate bankruptcy. You’ve got a long history of linking to sources that completely destroy whatever nonsense you’re trying to peddle. But it’s to the point where I’m feeling sympathy for you. And trust me, that is not a feeling I normally get for you. You are so needy and desparate to be seen as an expert on every subject that in your haste to prove yourself right, you repeatedly link to sources that do the opposite. Not just once or twice. All the time. It’s pathetic. Stop it. Just stop it. As someone who has witnessed your descent into madness in real time since you first showed up at Macleans in 2008 (and let’s be honest, you’d already had one hell of a head start), all I can say is, get the help you need. If you can’t manage even an online conversation without coming off as completely unhinged, I can’t imagine the impediment this problem of yours creates in real life. It’s probably the main reason you’re online all the time. You’ve poisoned your real life to the extent that there is nothing left. I am genuine when I say this: I feel sorry for you. Please get help.

          • This kind of nonsense is why you’ll never get anywhere in life RR.

            Never have anything, never be anybody.

            Don’t blame me, I tried to help you out…but apparently you prefer to stay in the tree and scream. Bye.

          • You forgot to mention that you’re richer than I am. Just an oversight I’m sure. Or was it implied?

          • Well, I was going to post a counter-argument, but it looks like several others have done my work for me (thanks DD, Chris and RR).

            Is it starting to sink in yet? You have it wrong. For once in your life, accept that you don’t know everything.

          • No Bram I do not have it wrong.

            And all the high school monkey posturing and grooming you’re doing trying so hard to be one of the crowd won’t change that.

            I shall leave you lot to your tree. The future is across the veldt. Bye.

          • And once again, Emily proves she lives in a different plain of existence than the rest of humanity.

            I guess the reason she’s an atheist is primarily because she believes there is no higher form of life than herself.

            Ask your shrink for your money back.

          • Ook ook Bram….off you go. And take your bananas with you.

          • Wow… such maturity. Must go over big with your Walmart cronies (speaking of which… aren’t you late for your shift?)
            .
            Doesn’t change the fact that you’re wrong!!!

          • Self-worship as a form of monotheism? Someone should do a Master’s thesis on that. It would be tough to get an interview with Putin though. Maybe Emily would volunteer. She’s a big fan of higher education.

          • If she’s educated, we’re all high.

      • Another lame non sequitur. It’s what I’d expect from you. Any opportunity to lecture us with one of your irrelevant opinions, you’ll take it.

        • Reality bites, dude.

          • You have no grasp of reality.

      • They all get government money for uncommon good. Taxes should be limited for common good.

        The bailouts for uncommon good in auto in Canada were in order, GM, Magna (then Stronachs), Chrysler, and to a much lesser extent, Ford, Honda and Toyota in Canada.

        But you are right, they all use the tax man, our wallets, kids futures with debt, even on the unborn, to get bailouts for their inefficiencies, waste, union/management greed and incompetencies.

        Me, I view it as politician sanctioned theft from my family and I. I don’t have a union sized pension, auto or government sized income, no one is bailing out our savings from devalued money from the debt and waste.

        All bailouts, corporate/union/auto/banks and money for uncommon good is pure corruption.

        With no options on our ballot to prevent this corruption, it makes us economic slaves of state. I thought Harper was a conservative, but he isn’t. A real conservative wouldn’t tolerate this huge waste going on.

        • Humans have always paid taxes Dave. The only question to debate is how much….and that will vary with the times and the need.

          You’re spending your whole life on this one topic, and you have no control over it anyway.

    • Actually, corrupt auto Governemtn Mottors, Chrysler, Magna relives tax payers of about $13 billion or more in 2008/9. Banks, $125 billion and I don’t have the time to add CHMC, CBC, Bombardier, union pensions including Canda Post, Air Canada and other parasites on taxpayers wallets.

      In my books, bailouts, corporate welfare, its all uncommon good and is corruption. Ottawa now spends over 50% of its gross budget on UNCOMMON good. I support common good like a national police force, roads, schools and what little Ottawa actually put in common good health care.

      Its the uncommon good corruption killing jobs. Mexicans don’t have a depreciation tax inflated economy of ponzi fraud debt. Their governments tax 1/2 the GDP as ours do, and that tax as inflation isn’t driving their wages crazy.

      You and I agree, but the problem is actually a lot worse than $700 million.

      Jobs are not driven from GDP or taxes, they are exclusively driven by the affordable exchange of need/desired good and services.

      Want jobs, better address Canadian costs of living and total costs of all of our governments. Leave me with more of my money, less hidden taxes and less protectionism, we will have more to spend on each others jobs.

      Me, when GM got the bailouts, I went from 2 cars to 1. They got my taxes, but not me as a customer. I sold the GM.

  3. Now watch UNIFOR force them out of Canada. Mark my words, it will happen.

    • UNIFOR, now there’s an example of putting lipstick on a pig.

    • Good.

      • Who needs real production, send them all to university.

  4. I blame the politicians and their corrupt back room deal making, they effectively sell out the taxpayers for corporate/union/auto/bank bailouts of uncommon good.

    Hey, I am not an anarchist, but where can I vote to support common good and not support uncommon good?

    I don’t have a MP or auto pension or wage, lots of people don’t, so why does these corrupt corporations, unions, banks and other money for nothing leaches get the right to pick our pockets?

    Give me better options on the ballot, someone with ethics, morals and less back room corrupt deals of UNCOMMON good.

    Good to see Chrysler backing down.

    Needed to keep us on budget, and with a tax bump when GM got bailed out, I compensated by going form 2 car home to one car home. Tax us more for bailouts/welfare/money for nothing efforts, raise inflated prices, less jobs for you.

  5. Trouble is there is so much propaganda about these jobs. I said this in 2008 and CBC censored me, but it is true economics.

    If
    I tax people $8000 / year for corrupt poorly run corporations welfare,
    bailouts; union greed, pension mismanagement and false promises, and
    bank bailouts, then they will have a lot less money to spend on each
    others jobs.

    Bailouts cannot work. Its a myth. Just like low
    value money, if I have to spend (1.00 / 0.90) 11% more for food, autos,
    home materials, I amd going to have less to spend on other peoples jobs.

    Just like Heinz, Kelloggs, Bombardier, Michelin and others, them 11% increases scare off customers and lay off people.

    Face
    is the dollar drop makes our lives more expensive, as Canada was
    devalued, pensions and all. Unless of course you are offshore.

    But media like CBC and others, just love governemtn propaganda and union copy type myths. Its why the government can’t solve the problems started with the 2006 advent of electronic counterfeit QE money to buy government debt no one savvy buys. The greed of debt blinds them to reality.

  6. Instead of corporate welfare, maybe we should talk of proper accounting of auto bailouts and have a 25% bailout recovery tax on bailouts and practices like this:

    http://www.theglobeandmail.com/report-on-business/daimler-pays-15-billion-to-end-tax-fight/article568605/

    Or better yet, let us buy SUT 4×4 for $12,000 from China, Kia SK pricing sure looks good too, Tata Motors produces a user service low TCO cost $9800 Pixel that is very economical at over 50 mpg. If you are really green, a Montral Canada company produces a 100% electric car for under $12,000 but can’t sell it in Canada as suspect RIV is in CAW/UAW pockets.

    Hey, if have less taxes for auto, lower prices for auto, we will have more to spend on each others jobs. Maybe we need government to not give corporate and union welfare. As I bet 16,000,000 working Canadians with more their own money, less taxes, less inflated costs in spending from taxes and protectionism can do a lot better job employing each other.

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