Chrysler could receive approximately $460 million from tax payers to update Windsor plant

Windsor is about to become a political hotbed as Chrysler is in negotiations with both provincial and federal governments regarding public investment in Windsor’s minivan plant.

In order to secure the future of the plant, current tooling needs to be replaced in order to make it more flexible and viable.

Chrysler is looking to invest $2.3 billion in the assembly facility but is asking Ontario and Ottawa for support. The money will also be used for research and development of the next generation Chrysler minivans, due in 2015 or 2016.

Canada has seen a decline in manufacturing over the decade and not giving into Chrysler’s request, valued at approximately $460 million, could shut down another assembly plant in Canada and put 4,600 direct jobs at risk.

Ontario and Canadian governments have a track record of supporting the auto industry with large investment, but those close to the negotiations call this amount of funding ‘unprecedented’.

Ford recently received $140 million from both governments to upgrade Oakville Assembly to build the next generation Edge and MKX.

In order to secure hybrid production in Canada, both governments also gave Toyota $34 million.

[Source: The Windsor Star, Financial Post via TTAC]

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