Marchionne Closes Chapter On Canadian Minivan Plant

Cameron Aubernon
by Cameron Aubernon

While celebrating the successful turnaround for Fiat Chrysler Automobile’s Sterling Heights, Mich. plant, CEO Sergio Marchionne proclaimed the issue of upgrades made to the Windsor, Ont. plant with help from Canadian federal and provincial governments one no longer worth discussing.

Automotive News reports FCA pulled out of discussions with Canada over a $2 billion upgrade incentive package that would secure the long-term future of the plant after politicians referred to the request as “ransom” and “corporate welfare,” according to Marchionne:

Chrysler is not in the business of accepting handouts. And if provincial and federal authorities in Canada think that’s the way to attract foreign investment, I think they are in for a big shock.

It doesn’t matter. It’s gone. That chapter is closed. Fiat-Chrysler has moved on. The agenda, from my standpoint, is complete.

Regarding Sterling Heights, where the Chrysler 200 will go into production this week, the plant’s upgrade as “an apt symbol of how far Chrysler has come because of the courage and resilience of [its] people,” Marchionne explained. The plant was due to close in 2010, only to return to life through a $1 billion investment made in light of the success behind the restyled and renamed compact, and the capacity needed to fulfill demand.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

More by Cameron Aubernon

Comments
Join the conversation
12 of 46 comments
  • Big L from Chicago Big L from Chicago on Mar 17, 2014

    So what is the verdict, are the next minivans going to be made a Windsor or not? or is the jury still out.

  • Lou_BC Lou_BC on Mar 17, 2014

    @crazycarlarry - I suspect that Marchionne will play the "I'm going to close the plant" card when it comes time to negotiate a new contract with Unifor. The fact that he walked away from politicians most likely had to do with strings attached that would preserve union jobs. He may of walked way from 500-700K but his position is probably stronger because of it. He didn't want to become Government Motors Canada.

    • Lorenzo Lorenzo on Mar 18, 2014

      Yeah, he'll keep Windsor going through the end of the union contract. It's a big plant (4 million square feet) that can handle more than just the vans. After that, the Belvidere plant has 3.3 million square feet and that plant builds the Dart as well as the Jeep Compass and Patriot. After the Jeeps are discontinued, there will be excess capacity there. In fact, the Sterling Heights Assembly is now state of the art and due to build the new Chrysler 200. The Dart could be built there too, leaving Belvidere open for the minivans. In short, Sergio has options, and unless the Loony drops in value, it's now cheaper to build in the US.

  • Gasser Gasser on Mar 17, 2014

    Congratulations Canada!! By joining NAFTA you didn't get US jobs, you just joined the US in shipping all manufacturing jobs to Mexico. Repeat after me: "Would you like fries with that???"

    • See 6 previous
    • Big Al from Oz Big Al from Oz on Mar 18, 2014

      @crazycarlarry You can argue all you want. Manufacturing USED to be all of those things. We aren't living in the 40s, 50s and 60s. Most any country can manufacture consumer products, even China. So why try and compete with them, unless you want to reduce your standard of living? Tariffs only increase costs and reduce the standard of living as well. Manufacturing jobs will more or less become a tiny part of any economy soon. So why try and invest in the wrong areas of manufacturing? Job protection isn't the answer. You have a very short term approach to sustainability. Look into the future and not dwell on the past glories. Living and dwelling in the past like you do is counter productive for the US.

  • RS RS on Mar 18, 2014

    Where is Chrysler going to move Minivan production?

Next