Marchionne says Chrysler not close to Canada investment deal image

While attending the Canadian International Auto Show in Toronto, Fiat Chrysler Automobiles CEO, Sergio Marchionne, said Chrysler is only half way close to an agreement with the Canadian government.

The deal in cause concerns a planned multibillion-dollar investment that would see Chrysler Group LLC’s two Ontario plant, including its minivan assembly facility in Windsor, upgraded.

“We’re not even close to a resolution of a proposal that is acceptable to us,” said Marchionne during the opening of the Canadian International Auto Show in Toronto, but added he thinks they were “over 50 %” close to an agreement.

Marchionne, the chief executive officer of the newly formed Fiat Chrysler Automobiles Group (FCA) previously said the deal would come through if Canada and the province of Ontario would give economic incentives. After that, Canada’s finance ministry said C$ 500 million were now reserved to aid the car making industry in the country, although the amount is not entirely destined to Chrysler.

Marchionne added that Chrysler investment proposal (although he declined to give specific numbers) would be the biggest investment the company has made since Fiat took over Chrysler in 2009 and the single largest in Canada from before the onset of the latest financial crisis. He hinted that at least $2 billion would be needed for the installment of the brand-new multi-vehicle assembly platform at the Windsor facility.

Via Reuters