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Home : Top Stories : Chrysler threatens to pull out of Canada

Chrysler threatens to pull out of Canada

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CTV News: Graham Richardson with the ultimatum

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ctvtoronto.ca

Date: Wed. Mar. 11 2009 10:50 PM ET

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

Comments are now closed for this story

pp
said

Let them sink - they will chpt 11 and re-org and hopefully become a stronger company - one that is actually viable...


Robert Leroux
said

If Chrysler is to pull out of Canada, I will never buy Chrysler again.


Ron shingles
said

Sounds like blackmail to me or extortion.. let them go and have the government and workers take over


lynne
said

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.


Sam
said

See Ya !


TKendell
said

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.


Rob O
said

See ya Chrysler, don't let the door of my jetta hit you on the ass on the way out.

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

Sayonara. Bring on Zenn...


The Hammer
said

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.


David Cox
said

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.


John Black Ontario
said

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


Mike From Sudbury
said

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.


Munro - Brampton
said

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.


Vote NDP in the next federal/provincial election
said

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.


Don
said

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.


Dave
said

I agree with Sam......Bye...


RDL
said

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.


Gee whiz
said

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.


Jared
said

And in other news... Tesla Motors announces you can now order their vehicle in Canada..


Medhat in Ottawa/Canada
said

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.


Don
said

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.


Leslie
said

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?


Ken Duff, Ottawa
said

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.


E.L. O'Connell
said

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.


Dave in Newington
said

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"

Mike from Fredericton
said

Good!
See ya... its about time we stop paying your you!


Kevin P
said

Good bye. Toyota announced another new plant for Ontario just 6 or 8 weeks ago. When Chrysler, and perhaps GM shut their doors, Ford, Honda and Toyota will all expand their operations to meet the market demand.

Chrysler and GM have to prove they are competitive to get a nickle of our tax dollars.


Marlin
said

I have long been a Chryler supporter but unfortunately not only have they lost touch with the consumer they fail to understand the attitude of the taxpayer. There are other auto manufacturers that will pick up the slack if Crysler or any of the American manufacturers are allowed to fail. The industry is no longer American or Foreign. It is global and foreign companies have plants and provide jobs in North America as well.

So lets get on with it. The ex Big 3 have come hat in hand once to often.


Andrew
said

say good bye!!! The unions and Chrysler caused the problems.... let it die and from the ashes may come something that could work.


Randy
said

... exactly. If Chrysler pulls out then boycott Chrysler.


Tom in Toronto
said

Pull out of Canada?

Never again should we buy Chrysler.


TKendell
said

You guys keep mentioning Tesla... it's a niche car that costs over 100k, and has a 3 year wait list. GM, Ford and even Chrysler have electrics and plug in hybrids coming out within 2 years that you can actually afford. That being said, we should not tolerate blackmail by these companies. Bankruptcy is the best course for GM and Chrysler, so they can reorganize and become leaner and more productive companies.


Cya
said

Bye bye Chrysler! Hope to not see you again sometime soon!!!


Mike B
said

BYE BYE Chrysler


Randy Renaud
said

Chrysler leaves, 10,000 direct jobs gone, 70,000 plus spin off jobs gone. This country needs manufacturing jobs. Look where ignoring their needs have gotten us.


GP
said

bye bye. The privitation of profits continues.

The system is so broken.


no more corporate welfare!!
said

Let them go! Threats after the corporate welfare these companies have received?
Better yet throw them out of Canada


Jackie
said

Let them go!!!
There are plenty more companies to buy from, actually there are one too many.


RDunne
said

Well a threat is a threat and if they want to do that then all Canadians have to do is Boycott Chrysler products. Its with an attitude like that where Canadians and other will not take it lightly, they will just purchase the competitors vehicles and wave bye bye to Chrysler


TKendell
said

Vote NDP in the next federal/provincial election says,
"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."

This is why we don't vote NDP... you guys don't have a clue. Read up on the 1965 Auto Pact, then NAFTA, and then maybe I'll take you seriously after you educate yourself.


Trent
said

I hAve no problum giving a hand out to all compines but do not thereten the hand that feeds you...As it will bite back.. You want to move fine,we the tax payers will help those out with new education,but don't think we are stupid when you guys have been getting millions of pay bonus for years..If your so worried give some of your millions back to the workers who made you your money....


PissedCanuck
said

Let them pull out of Canada. Their stuff is garbage nowadays.


Cat
said

Everyone's overlooking the main problem here. Who gave this government permission to lend billions of our money in the first place? A decision this large should have been put to all the people to vote (like an election) to see if WE wanted to lend our money to them. The last time I checked any business that fails, fails period. Maybe I missed the new grants for businesses to fill out the failure forms and the government will issue you more money when needed.....


tony
said

Tell me this why give them money ? Who is going to buy the cars? they have cars already made but no one is buys?

time for them to sink


scott pyke
said

As a Canadian taxpayer, I would love to show them the door. If it is unprofitable to operate in Canada LEAVE!!! It doesnt talk much common sense to see that. If you can run a company sucessfully dont come asking us taxpayers to bail you out of your poor business plans


Sid in MTL
said

Instead of bailing out these dinosaurs I want my tax money put into funding Zenn....buy up those abandoned plants and fill them with non-union labour, lots of dollars for the technology and let Zenn put Canada in the forefront of the automotive market.

We lost our chance to excel in aviation when the Cons dumped the advanced Avro Arrow and now the Cons have a chance to redeem themselves.

But this won't happen because narrow-sighted Harper and his constituents won't be happy seeing those tar sands sitting there doing absolutely nothing.

What a shame! But every cloud has a silver lining....the sooner each one of these dinosaurs fossilizes, the sooner my stock in Zenn takes off.


WallyJ
said

let em go, bring in more Japanese stuff, at least it runs and holds value..


So Sad ..... Too Bad!
said

"So Sad, Too bad!" This is what Chrysler told me when I took my new top of the line New Yorker back after 6 mths with the paint flaking off the hood, roof and trunk door plus two 1" flakes of electro-plate peeling off the rear bumper. Chrysler clamied I had parked my car outside where acid rain had caused the paint problem!

I had to pay to have my new car painted at a local body shop, drove it until I could afford to trade it on a 1984 Oldsmobile Eelta 88. Since then I have bought nine new fully loaded GM cars and trucks and have had little or no problems and great GM dealer service. I now have a new 2008 Silverado Duramax and love it!

So I say to Chrysler "SO SAD, TOO BAD.....! it's your problem, fix it yourself.

Eric
said

Comments like this from Crysler this is just another nail! you would think they would want to increase sales not kill off any remaining sales? I grew up in Windsor and feel heart broken for my friends working there But let them go Now ! The capitalistic market they want will correct it's self


Jim in Calgary
said

I am a Jeep owner, if they pull out of Canada, that's it for them. I will never own a Chrysler again either.


MikeLondon
said

Never give in to an ultimatum. Chrysler produces the lowest quality and poorest performing line of vehicles in North America. They are doomed anyway. While the job losses would be tragic, no matter what, Chrysler is in such poor shape it is not sustainable as it is.


Frank Edmonton
said

Hay Crysler you should go ask the the people that benefit the most from your gas guzzling cars ( THE OIL COMPANIES) they made Billion ever year!


Lee
said

from red deer county ... if the money they are asking for was paid direct to the workers .. they could all retire in style ... let the company leave ... it has been at least four decades since they built a good car!


Tony in St. Catharines
said

Well Chrysler president and vice chairman Tom LaSorda, since you put it that way, see ya! Wouldn't want to be ya!


Tim in Victoria
said

Uncompetitive market? Seriously, that's the best they can do? Last I checked there are over 50 brands jostling for position in the Canadian auto market. And these goons want $2 billion "or else"? Enough's enough.


Lyle
said

I hope our collective government actually read what people say these days. Chrysler should get nothing. And more nothing for thinking they can threaten. I can't stand to keep hearing about this, let the all go under. The media also needs to know that there are lots of people losing their jobs out West, perhaps some coverage on that would help the people of Canada become more united and we would see that the auto companies are already being treated like gold, there were more people laid off in Fort Mac then all three north american car companies employ in Canada. I think we have all had enough of this car company crying. If a bank won't give them money, then I won't either.


John
said

There is no proof that these companies can survive even with a bailout. Any rescue attempt needs to be considered very carefully. Threats by Chrysler don't help and they need to address way more than wages to be competitive. I really wonder if they "get it" even yet.


Dave in Courtenay
said

Both provincial and federal governments should identify that if Chrysler pewrmanently closes their plants, they must face total forfeiture of their Canadian assets. Their land and industrial hardware are not without real value. If they don't want to use them in Canada, then leave, and we will find other investors and operators willing to use them. Moving manufacturing capacity should not be without penalty.


ultamatt in ns
said

Dont just let them go , kick them out ,along with GM , and sieze ALL of thier assettes on this side of the border to pay back the money they owe to taxpayers. Then take their empty plants and turn out wind generators and solar panels full time .New jobs ,and stuff we need .


Brian Summers
said

The car manufacturer demands Billions of dollars from our Government, yet their CEO and executives make millions, or they pull out of Canada. Then we have the CAW who have been saying for months that they won't make any concessions whatsoever( even thou they make 77 dollars per hour, benefits included) to save their own jobs. They too have been demanding that the Government give out Billions of dollars,(of my hard earned tax dollars) so that they can keep their high paying jobs. Is it just me ? or is this the most idiotic concept ever imagined. Sorry about your luck guys, but goodbye and good ridence. Don't let reality hit you on the way out !


DaveA
said

Its obvious that Chrysler must already owe revenue Canada money already. Now they want Rev Can to give them their withheld funds and are also asking the Fed gov't to give them more money. Seems like a lose-lose situation for Canadian taxpayers. If chrysler is stupid enough to get into a situation where it is costing them $70 per hour for their workers, its time the management took a real long look at themselves and they will see that they are not only incompetent but also being lead around by the ring in their noses that they allowed the unions to put there. I agree--let them go. I'm tired of having my tax money going to these rejects that couldn't run a kids picnic. Bye bye


Blair in NB
said

Glad I don't own a Chrysler. Nothing like not getting you're own way and threatening to leave. Lets see....Cut lots of jobs and then threaten to leave. Thats a great company to work for. I'm sure there is lots of satisfied Chrysler/Dodge owners out there.


Kelly from Med Hat
said

So now Chrysler thinks they can threaten us into giving them the money because they haven't been able to come up with a plan to save themselves. Let them go! Put the money back in the pockets of consumers to help stimulate the economy or to pay down their debt (which would also free up money for the banks).

To RDL-Actually Toyota and Honda are asking the Japanese govt for billions in aid as of 3 or 4 days ago. So is Nissan. Ford has actually played the game smartly, they started downsizing about 3.5 years ago and started the ball rolling towards being a global company with a global product. We will see the results of this effort this fall when the 2010 Fiesta and Euro Focus arrive. The Fiesta has been nominated for Global Car of the Year and is 1 of 3 finalists. And Ford is still trying to survive on its own.


Fatman
said

So Chrysler might have to pull out eh......well, here's your hat and coat pal, the door's over there to your right and don't let it ya in the a** on the way out!

And by the way, don't bother sending any of your "south of the border production" up here in the hopes of peddeling it 'cause we ain't buyin'!

I hope Ottawa and Toronto are taking note and at the same time putting their wallets back into their pockets.


Glen from Calgary
said

Even mercedes is offering a real nice s.u.v.[G.L.K. series] that has a comparible price to some of the big three s.u.v.'s. I would suggest checking them out if anyone is looking. My wife and I were looking at Pontiac g-8,s, and for the same money bought a Mercedes c-300 instead.


Trev
said

Buh bye!
I've been a Jeep driver for a decade and a half but my support has eroded to the point my next vehicle will NOT be north american.


K_W
said

See ya,

I have no respect for companies that threaten to get what they want.
My tax money better not go to these people. If they get rid of the union and cut everyones pay not just the people who work in the plants every single person who just works for chrysler and GM then restructur, they could salvage their comapnies by they would rather cry about not getting the bail out money asap.


Melanie
said

Oh, so we're being a bully now and demanding special treatment. Tough cookies. Away with you then - I mean, NOW.


Dayton
said

Please go already and take Danny, the CAW and the Coalition with you!


Retired Soldier in Kingston, ON
said

Yet another automotive Executive ( Mr. Tom LaSorda of Chrysler LLC -a Wall St hedge fund no less!) posturing and threatening Canadian governments and hard-pressed taxpayers with closing up shop if he doesnt get what he wants!
Oh please...gimme a break!!!

These "corporate welfare bums" need to be sent a clear and tough message by our politicians. Your executive team and the Canadian Auto-Workers union's greed put you where you are; a failing corporate concern! Ergo - NO BAILOUT!!

Suck it up; this taxpayer and military retiree is not going to subsidize your outrageous and extravagant demands and CAW workers affluent lifestyles!

Pro Patria


Tapped Out Taxpayer
said

This is a dispute between Chrysler and the CAW. Our tax dollars should not be involved. It's about time our supposedly Conservative government started acting like one.


Canadian Company??????
said

Where in all this is the word Canadian. This is an american company who uses our workers. This is not a Canadian product.

Let them go, some billinare with a vision can buy it up and make a Canadian car. ie We make our own Canadian defence LAV 3's one of the best combat vehicles in the world.


Eric in Oshawa
said

I just took delivery of a 2008 Dodge Charger. This is a solid car and no others in the same category can compete. One of the deciding factors was that it was built here in Ontario like my 3 previous vehicles were. If anyone of the big 3 move out of Canada, everyone should boycott their product, plain and simple.


Canadian taxpayer not in Ontario
said

Good by Chrysler!!!..NO MORE MONEY ..seize their assets..someone else can take up the slack...Poor product from the start!!!!


Ryan P.
said

Bye! If there's one thing this company knows it's how to not build bridges (or cars for that matter).....These corporate execs forget that they are no longer requesting private funds they are asking me to fund them with my tax money. As a prospective shareholder I say NO! If Harper gives in and meets these demands he's lost my vote come next election....enough is enough....leave, we still won't buy your inferior cars.


Joseph
said

They're teetering? Well, duh. Somebody give them a push, please.


Sask Bob
said

Mr. Lasorda, don't let the door hit you on the behind on your way out of Canada.

Signed,
The Canadian Taxpayer


reno
said

why doesn't goverment put a higher tax on import cars. it would serve 2 propuses one make money for the goverment and would lower the playing field for our indrusties.
better to force them to our way of living then go back to theirs


James
said

No more Canadian Tax-Payer money for auto companies! Let them feel the consequences for their greed!




Remarkable
said

Chrysler is doing nothing more then telling us Canadians that if we don't give them what they want, they're going to take their ball and go home.

Since the start of this bailout proposal, they have approached our government, asked for billions and have treated the Canadian government with contempt.

I don't think that we should put up with this garbage and if they so choose to leave, then go.

I do not think that Chrysler is going to be around in the next couple of years, so they can take their bankrupt company and take a hike.




Chris in Burlington
said

Let them sink under the weight of their own mess! I have been a faithful Chrysler man for fifteen years, and never again will I buy if this goes through! If you add the cost of the money they owe the Canadian Government (which Ottawa will lose if they go South) plus the money they are asking for is, according to this article, the sum of 3.1 billion dollars. That amounts to almost $94 from every single living Canadian. All 33 million of us. For what? A free hand to mismanage again? I'll bet 95% of working Canadians would be fired without so much as a goodbye if we were to mess up our job responsibilities like these folks have. Economic sensibility before economic comfort!!!

Chris


KJ in Kingston Ontario
said

Don't let the border gates hit you on the way out.....

This is so nuts... If those car companies with their $70/per hour wage and benefit programs get one thin dime of government money -- nobody making less should be expected to pay income taxes.

It is that simple. It is time for leaders to show some backbone here.


Mike I had a chrysler once, now have 2 honda's
said

I think the general opinion here says it all. Please take this bunch of comments and deliver them registered mail to Mr. Lasorda. Or maybe he really doesn't see the writing on the wall (oh, I mean OUR wall). As far as his poker skills go, I don't think he realizes we don't blink.


With all due respect, enough is enough.
said

When it's over, it's over.

Let's all get over it.




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