At the time, the joint venture's production facility had an annual production capacity of 180,000 V6 engines, 75,000
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| Chrysler can't turn to Europe, where its DaimlerChrysler parent company is currently struggling to come to grips with high labour costs, short work weeks and some of the most generous worker benefits in the world. (Photo: Trevor Hofmann, Canadian Auto Press) |
So, with GM already exporting Chinese made components to North American destined products, there is reason enough for Chrysler to look to offshore production opportunities, especially considering that the automaker doesn't compete as well as GM does in the compact class. It can't turn to Europe, where its DaimlerChrysler parent company is currently struggling to come to grips with high labour costs, short work weeks and some of the most generous worker benefits in the world. North America's manufacturing sector isn't that far off from Germany's, with the automakers working hard to get concessions from the unions that appear to be crushing any potential for profits.
Of course, the United Auto Workers and Canadian Auto Workers have a different take on that story, but it hardly will matter what
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| Chinese car assembly workers cost around $2.42 ($1.96 USD; 1.50 euros) per hour, a fraction of the $61 ($49 USD; 38 euros) per hour their German counterparts make and the $45 ($36 USD; 28 euros) U.S. workers earn. (Photo: DaimlerChrysler Canada) |
At a glance, it only makes sense for Chrysler Group to build its next-generation compact models outside of North America, considering that some of its core competitors enjoy more cost effective production arrangements overseas. Of course the automaker would want to reduce expenditures and deliver a competitive world car, especially in the lower end of the market.