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| Buzz Hargrove, CAW chief, stated the new plant was motivation for compromise in labour talks. (Photo: DaimlerChrysler) |
Plans to build the new plant were billed by Buzz Hargrove, CAW chief, as motivation for his union's willingness to compromise in labor talks that concluded last October with a new agreement.
"This is a huge blow. We're going in the wrong direction and we're seeing plants close and production reduced. We thought this would help start to reverse a trend, and this is not going to happen," CAW president Buzz Hargrove stated to Reuters.
He continued, "I'm just devastated. I'm angry. I'm frustrated. It's the last thing in the world I expected. Quite frankly I thought things were rolling along well on the project."
According to Hargrove the potential plant would have created up to 2,500 assembly line jobs and, while he didn't say it, no doubt a much needed boost to the CAW.
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| The first Pacifica leaving the line from the current Windsor plant. (Photo: DaimlerChrysler) |
In response Zetsche stated, "I do understand the emotions and, of course, we knew there would be a big disappointment." Additionally he said, "At the same time, I have to make it very clear that during last fall, we did not give a promise that we would build that plant. What we said, and we said it clear and loud, was that we would try to do everything possible to make that a viable business case, but that we only could proceed if there would be an economic basis for that."
According to Reuters, in an effort to calm waters Zetsche added that "the door is clearly open to Canada and to Windsor" for further investment and reminded all involved about plans for DaimlerChrysler to spend $2.6 billion in Canada between 2002 and 2005.
While it looks like a black week on the national calendar independent auto analyst Dennis DesRosiers doesn't necessarily agree.
"It's not devastating. It's negative that we lose upside potential, but we didn't have these jobs to begin with, so it's not as if an existing worker is losing his job." He added, "It hurts in that we lose upside potential, not that we're losing existing jobs."
But losing out on assembly plants in Canada is not unheard of. Our country has lost many deals south of the border because of cheaper labor, lower-cost facilities, and due to incentives offered by state or country; the Southern U.S. and Mexico being the most desirable plant locations.