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Old 03-11-2009, 11:27 PM
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Dodge going south?

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Click the image to open in full size. Chrysler president and vice chairman Tom LaSorda speaks to MPs in Ottawa on Wednesday, March 11, 2009.

</TD></TR></TBODY></TABLE>Chrysler threatens to pull out of Canada

Updated Wed. Mar. 11 2009 10:50 PM ET
ctvtoronto.ca
Chrysler LLC says it may no longer be able to operate in Canada unless Ottawa loans the company billions of dollars and workers agree to massive wage cuts.
Chrysler president and vice chairman Tom LaSorda told MPs Wednesday the company is seeking US$2.3 billion from the Canadian government -- roughly a quarter of what it's asking from the White House.
He also said Canada's tax agency must agree to not demand more cash or collateral in a tax fight with the company. The Canada Revenue Agency is withholding $300 million in tax rebated and has put a $500-million lien on Chrysler's Brampton plant.
"The current success and long-term viability of Chrysler's manufacturing operations in Canada is very much dependent on (those) three critical factors," he told a committee hearing.
"Chrysler LLC cannot afford to manufacture products in a jurisdiction that in uncompetitive relative to other automotive jurisdictions."
New Democrat MP Joe Coartin, a member of the parliamentary committee that heard LaSorda's comments, dismissed them as little more than posturing.
"The bottom line is that Chrysler does not function in the United States without Canada," he said.
Chrysler Canada and its parent company, Chrysler LLC, have had their sales hammered by the economic downturn. Its sales were down 27 per cent in February compared to last year and it has asked Ottawa for a $1 billion in emergency loans as it works on its restructuring plan.
LaSorda said his company's labour costs are $70 an hour in wages and benefits for both current workers and retirees. He says it needs to be cut by $20 to be competitive.
Just last week, Chrysler announced it would be cutting 1,200 jobs in Windsor, Ont., by eliminating the third shift at its minivan assembly plant.
The Windsor plant produces the Chrysler Town & Country and Dodge Grand Caravan minivans and has about 4,450 hourly workers. It is the company's only supplier on minivans as two other minivan plants have been shut down in the U.S.
LaSorda said that the company could move the Windsor plant to either of the other sites they previously shut down.
The Dodge Grand Caravan was Canada's No. 3 best selling vehicle in February.
Analysts say Chrysler is teetering on the edge of bankruptcy. On top of the most recent job cut announcements, it has slashed about 32,000 jobs to staunch the financial bleeding, and has cut production levels by 30 per cent.
With a report by CTV's Graham Richardson in Ottawa
<HR>********>var numComments = 83;*********>Comments are now closed for this story

pp
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">Let them sink - they will chpt 11 and re-org and hopefully become a stronger company - one that is actually viable...

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Robert Leroux
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">If Chrysler is to pull out of Canada, I will never buy Chrysler again.

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Ron shingles
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">Sounds like blackmail to me or extortion.. let them go and have the government and workers take over

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lynne
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">so let them go, then the workers and other Canadians can buy up the factory cheap, the government can loan some money to retool, and Canada can become a world leader in the creation and assembly of green cars cars and trucks.

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Sam
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">See Ya !

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TKendell
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">Right. The only vehicles that are making them any money... the Caravan, 300, Charger and Challenger are built ONLY in Canada. And they're threatening to shut down the plants that make them? Don't fall for it.

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Rob O
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">See ya Chrysler, don't let the door of my jetta hit you on the *** on the way out.

They've now resorted to the same tactics as their unions.

Sayonara. Bring on Zenn...

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The Hammer
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">It's funny but governments say that they will never negotiate with extreme factions, yet here we have the auto industry holding a gun to the taxpayers with the expectations that we ante up the ransom to keep their losing industry afloat.

Well as a taxpayer for many years now, I say it's time our government just stand up and tell them where they all can go.

What's the worst that could happen, Canada loses a few more jobs. Considering what these companies already cut and what they will cut regardless if the money is given, will make no difference.

Let them go. Then news persons can move on to another topic instead of this constant haggling with losing companies. So what if Jack Layton loses his job because of it. He's but a lost soul as it is now.

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David Cox
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">Mazda, Toyota, and Hyundai currently offer 0 percent financing. Why would anyone buy a Chrysler, or Dodge vehicle with no incentives and questionable reliability. Read the latest consumer reports. Let them leave Canada.

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John Black Ontario
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">This is supreme arrogance! ..... this coupled with the inane utterings of the President of the CAW should be a wake up call to all Canadian's that it is time to call an end to this absolute farce! .... is this sovereign Nation going to be held to ransom by a foreign entity? ......... then all the sacrifice that Canadians made in two World Wars and are still doing so! .. was for nought

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Mike From Sudbury
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">Put the money to infrustructure spending instead wich will have more of an impact to our dismal economy.We need to get value from tax payers money. Throwing money the failing Chrysler and GM would seem to be a likley wasted effort.

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Munro - Brampton
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">Too bad. I say NO, NO, NO. They just do not get it. For the last few years the fuel efficient cars are still around 34/MPG. I don't think its changed much in years. Where are the electric cars ? If you think they can't work well enough, I got the shock of my life when I looked up the 'Tesla' sports car; 0-60 in under 4 seconds and a range of over 200 miles ! Yes , we have the technology. But not these car companies. Do a search on it and see. It is amazing; and this car is coming to Canada this year. Sadly its 100K. But the point is the technology can be made cheaper in the future. But the big 3 have been dragging their feet. I say let them sink. Have one car company or something.

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Vote NDP in the next federal/provincial election
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">If Damiler Chrysler ever thinks of pulling out of Canada then I hope we apply heavy penalties if any imported Daimler Chrysler products comes into Canada.

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Don
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">As a Canadian citizen, I find this corporate blackmail to be offensive. Chrysler can cram it. Take your crappy cars and get out. The government better not lend these creeps one nickel. In addition to it's financial problems the company is obviously morally bankrupt as well. Goodbye.

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Dave
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">I agree with Sam......Bye...

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RDL
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">Let them go!!!!!

Maybe after they go, the workers (unions) will realize that it is hard to sustain operation when they have to pay $75.00/hr (benifits included). The unions have or will destroy the the industry in Canada, and then blame the govenment for not stepping in to help them. I am sure if you gave the workers a choice whether they take a substaintial pay cut in order to keep their job they wouldn't think twice.

The executives must also do their part regarding their huge salaries/bonuses.

Ford/Honda/Toyota are not at the feed trough looking for hand outs, so perhaps GM and Chrysler should ask what they are doing right.

Get rid of the unions.

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Gee whiz
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">Golly, didn't those fools at Chrysler watch Prime Minister Harper's big speech yesterday? Sing after me the harperite mantra... don't worry, be happy.

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Jared
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">And in other news... Tesla Motors announces you can now order their vehicle in Canada..

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Medhat in Ottawa/Canada
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">please. Let them get out..let them sink. There's no guarantee this company and similar poorly managed companies in line for tax-payers money, would not do just that (bankrupt/sink)after we give them billions and billions.

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Don
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">So Chrysler is "threatening" to pull out of Canada. I hope they just leave. No threats needed. I just feel sorry for all the mechanics that will be hurting as Chrysler vehicles won't be in for repairs every day.

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Leslie
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">Big surprise USA trying bullying tactics. As far as I am concerned they can go bankrupt, maybe some smart CANADIAN business people will pick up the USA dying automobile carcus at fire sale prices and buid a Canadian Automobile Company.
I mean we are the best country in the world RIGHT?

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Ken Duff, Ottawa
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">Let them go.
File to get back everything you ever gave them that was contingent on staying.
Don't give up until you get it all back.

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E.L. O'Connell
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">OK, let me get this straight: Chrysler (American company) is asking Canada for a loan 1/4 the size of the total loan they are asking from America, which I may add is ten times the size of Canada.
ARE YOU KIDDING ME?!
Chrysler you have some nerve. These numbers suggest you have a much larger investment here in Canada than the U.S., but nothing could be further from the truth. I SEE RIGHT THROUGH THIS DIRTY PLOY.
You figure with our "coat tail economy", we would be desperate to hang on to any and all jobs that we can, and thus securing your so-called "future" by threatening to pull up stakes in Canada.
Union concessions, yes. But blackmail..........NEVER!
Pack up your tent, Chrysler, because this circus is over.

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Dave in Newington
<TABLE><TBODY><TR><TD style="WIDTH: 450px; WORD-WRAP: break-word">This is starting to look more and more like blackmail to me....
Ford seems to be the only honest one of the so called "Big 3"
How much longer will it be before every corporation in Canada that employs more than,say, 5000 workers decide to jump on the "Three Billion dollars please,or we head back south and let you worry about 5000 unemployed"
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Old 03-12-2009, 01:16 AM
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Old 03-12-2009, 01:16 AM
 
 
 
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