Ottawa, Ontario – Speaking to the House of Commons Finance Committee on Wednesday, Chrysler LLC president Tom LaSorda said the company may close Canadian vehicle manufacturing plants if it doesn’t receive US$2.3 billion in Canadian government assistance, significant union wage concessions, and a cessation of cash demands from the Canada Revenue Agency which is seeking millions of dollars in back taxes.

LaSorda said that the labour costs at Chrysler’s Canadian plants aren’t competitive with Japanese auto plants in Canada, and that Canadian Auto Worker (CAW) union concessions agreed to on Wednesday with General Motors aren’t enough to restore Chrysler’s profitability.

“Failure to satisfactorily resolve these three factors – the labour 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 and may very well impair our ability to continue to produce in Canada,” said LaSorda.

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