Chrysler needs Canadian concessions

Chrysler must have concessions from the Canadian government to continue its operations.

Tom LaSorda, President and Vice Chairman, spoke to the Canadian House of Commons in Ottawa. After his testimony, LaSorda told reporters, “Failure to satisfactorily resolve these three factors — the labor costs, government assistance and of course the transfer tax — will place our Canadian manufacturing operations at a significant disadvantage relative to our manufacturing operations in North America.”

Until recent years, the value of the Canadian dollar relative to the American dollar meant it was less expensive to build vehicles in Canada, despite the additional costs of nationalized healthcare and other factors. With the decline of the U.S. dollar over the past few years, it has now become comparable or more expensive to conduct operations there.

LaSorda was also critical of the deal between General Motors and the Canadian Auto Workers, terming the agreement “unacceptable” and wouldn’t do enough to equalize Chrysler’s labor costs to those of the transplant automakers. The Chrysler executive said the company could shut down its Canadian facilities if it is not able to reach an accord with the CAW.

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