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No, Canada: Chrysler Prepared To Take Toys, Go Home

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Chrysler dumping Canada?

Chrysler dumping Canada?

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Chrysler co-president Tom LaSorda hopped across the border to Canada yesterday. It was not a leisure trip.

LaSorda paid a visit to the House of Commons in Ottawa, delivering some very grim news to those assembled. In a nutshell, he explained that Chrysler's sales in Canada are down by about 27% compared to 2008, and in order to continue operations in the Great White North, the company needs (a) support from the Canadian government, (b) concessions from the Canadian Auto Workers union, and (c) help resolving a tax dispute in Ottawa.

The union concessions are Chrysler's biggest bone of contention. As in America, Chrysler pays its workers more than those employed by Toyota, Honda, and other companies. (In Canada, the difference is about $20.) On the upside, GM brokered a deal with the CAW earlier this week, so we're hoping Chrysler will fare similarly well. The $2.3 billion in bailout funds Chrysler is requesting may be somewhat more elusive.

These days, every company seems to be having similar talks with government entities around the globe, and many fall on deaf ears. In Chrysler's case, though, chances are good that Canada will listen. After all, about 9,000 Canadian workers make a living thanks to Chrysler--which, contrary to the calculations of TCC's number-crunching monkeys, isn't 3% of the population, but it's still a lot of folks.

[source: DetNews]

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Comments (4)
  1. "Good Chance"

    I believe that Chrysler can get the support from Canadian workers and their government that it needs to help it to stay afloat. Chrysler has the leverage in the fact that with PT Cruiser production tailing down in Mexico, production of vehicles like the 300 in Canada could potentially be shifted there if necessary to take advantage of cheaper labor cost. The result would be a loss of Canadian jobs.
     
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  2. "I hope you're joking..."

    9,000 would be 3% of population in Iceland but they have 100 times more people in Canada, so the percentage would be that much smaller :-)
     
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  3. "Nice math"

    Canada has 33,000,000 people, 3 % of that is 990,000
     
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  4. "Ooops"

    @John, @Chris: You are both entirely correct. This is what happens when certain people forget to carry the one. Repeatedly. Personally, I blame the number-crunching monkeys who have recently colonized TCC's calculator room. They never listen. Yeesh.
     
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