DaimlerChrysler is Not Sure if Ontario is Right for its New Plant
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| Chrysler Group president and CEO Dieter Zetsche said that government support for its proposed assembly plant would be "an important element" in the company's decision to go forward. (Photo: DaimlerChrysler) |
With DaimlerChrysler's plans to construct a new state-of-the-art auto plant Ontario has a lot to gain, that is if federal and provincial governments are willing to step up and play ball.
While Dieter Zetsche, president and chief executive of the Chrysler Group, did not confirm newspaper reports that his firm was looking to secure CAD$300 million (US$200 million) in funds before he would commit to the project, he did say that government support would be "an important element" in the company's decision to go forward.
Logic says that the company would be looking for the best possible location which would no doubt include the most cooperative government. "We are making progress and, at the end of the day, the project has to be economically viable. Then we can decide in favor or if we aren't," Zetsche stated to a group of Toronto media.
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| DaimlerChrysler Canada has just moved their headquarters to a new office building in downtown Windsor, facing Detroit. (Photo: DaimlerChrysler) |
The company commented last fall that it was considering building a new assembly plant in Windsor, Ontario, the home of DaimlerChrysler Canada. Its close proximity to downtown Detroit makes it an especially convenient location and our low dollar an economic boon.
The government isn't the only organization that would need to cooperate in order for Canada to benefit from the new plant. Positive assistance would have to come from the Canadian Auto Workers union (CAW) and various suppliers. But that said the lure of the new plant was a strong motivator for the CAW to quickly agree to a 3-year deal that raised pay and guaranteed union jobs.
Zetsche, before meeting with Ontario Premier Ernie Eves on his first visit to Toronto since taking over Chrysler Groups top job, said that the Windsor project would be "a topic for discussion." The CAW's Buzz Hargrove also met with Eves earlier this month to request his help on behalf of his union.