skip to main |
skip to sidebar
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.
The Chrysler PT Cruiser is officially on its way out. Chrysler’s CEO, Tom LaSorda, confirmed that production of the retro station wagon-type thing will end this summer.
An opinion-divider from the start, the PT Cruiser sold fairly well during the earlier years of its nine-year production run. To date, Chrysler has produced over a million units, including the standard "Sedan", the convertible, the turbocharged GT performance model and 14 special edition versions.
With demand having dried up over the past 24 months, Chrysler felt that the time was right to yank the cord.
PT-02 It's probably worth pointing out that as of 2010, Chrysler's model lineup will consist of just four vehicles, the Sebring and Sebring Convertible, the 300 and the Town & Country minivan. Just two years ago, Chrysler's lineup was significantly larger, and included vehicles like the Pacifica, Crossfire and Aspen.
Though the end may be near, this probably won't be the last time we see the PT, as Chrysler is interested in selling off its tooling equipment. In an interview with Bloomberg, LaSorda admitted that Chrysler hadn't yet found a buyer, but, it is actively looking for one.
Perhaps they could sell the equipment to GAZ, the Russian company that bought the rights to the previous Sebring Sedan? just a suggestion...
I Was reading an article just a few minutes ago (browser crashed before I could save the link) that discussed whether the government should help out the big 3 automakers, bail them out....
Here's a thought though, Instead of spending $25billion, to bail out these automakers that already make millions of dollars in profits (well, maybe right now they're not, they need this money so they can go back to making millions) why not spend just a fraction of that, to assist the citizens of the country....
I'm sure the total credit card debts that people have right now, that they're having trouble paying due to the poor economy, is far less then $25billion dollars... the population of North America is approximately 514 million people, I'm SURE people's credit card debts aren't a million dollars, well into the thousands maybe, but no where near a million....
So using even $1Billion of that $25billion that they would be giving to the automakers, use that to help out the people of the country...as a good will gesture (a Christmas present if you will) would do way more long term for the country, with people no longer having to worry about there debts, having to scrape together money to pay debts they have, then pay bills and feed there families.... Would really be a morale booster for the entire continent (as I'm using the 514million number to mean all of North America) with people now having money for savings, they can move on with working towards there futures without the stresses they had...
Perhaps also go a little further? earmark $2 billion for persons that are well behind on there mortgages, in danger of losing there homes and ending up on the streets.....
This economic turmoil has been brutal on business, especially "the little guy" those businesses open long hours, working hard to serve the customers, and at the end of the month, barely getting by with just enough business to pay the bills and employee wages... some not being able to last longer then a few months because of it... While you'll see other businesses, some that have been open for 30-50 years, some even more, going under because they can no longer survive due to rising operating costs and with people not having money to spend, business is obviously going to be slow, especially during this holiday season, that so many businesses depend on for more sales to keep them going until next year... these businesses that have been mainstays in communities are going under.... how about $3billion towards assisting small businesses...
Finally, $1millon, spread out as a gift to all 514million (equals $1,945.52 each) people living on this great continent...to truly make these holidays, happy.......
Why not do this instead of handing over a blank cheque of $25billion to the "Big 3" to keep them going so they can continue to make there millions...
But then... an idea like this only makes sense right? and its better to take care of the big guys, make sure they're happy and keep them going, and leave the little guys to fend for themselves... so it's not an idea that would become a reality right? a government that cares for the citizens that elect them rather then the big businesses that line there pockets... naaaah... can't happen right?
Give me your thoughts on this...
Posts
