The Chrysler Group LLC announced it decided to withdraw its request for government funding but would proceed with the investment plans for the two assembly plants in the Canadian province of Ontario it wants to further develop.
Calling out the Canadian’s government auto industry view to be short-sided, Fiat Chrysler Automobiles’ Chrysler unit said it decided to withdraw its cash subsidy appeal because it turned into a “political football” and added it would also keep its “strategic options” open.
“As a Canadian, I regret my failure in having been unable to convey the highly competitive nature of markets that offer manufacturing opportunities to carmakers that operate on a global scale,” said FCA Chief Executive Officer Sergio Marchionne, which has a dual Canadian – Italian citizenship. “Some of the shots across the bow following our initial approaches to the federal and provincial governments reveal, apart from political convenience, a somewhat restricted view of Canada as an industrial player in what has become a borderless economy.”
While some of the industry’s annalists and experts first said Marchionne was seeking a better negotiations position in its strive to get $700 million in Canadian support on the planned $3.6 billion investment, Chrysler ultimately said regardless if it gets the funds or not, would still push for development and production of its next minivan at the Windsor, Ontario, assembly facility.
by Aurel Niculescu
) - Thursday, March 6th, 2014 - filed under Chrysler
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