Marichonne Still Seeking Location For New Minivans

by Cameron Aubernon

February 14th, 2014 3:15 AM

marichonne still seeking location for new minivans

Fiat Chrysler Automobiles NV boss Sergio Marichonne, in talks with federal and provincial governments in Canada for loans to help prepare their factories in Windsor and Brampton, Ontario for new vehicle production, may come to a decision about moving forward with plans for where new minivans will be built by the end of March 2014.

Bloomberg reports that parent company Fiat is “not even close” to resolving those talks, with Marichonne hinting that he may take his business elsewhere, such as the United States or Mexico, if Canada won’t have them any longer:

“We’ve got to decide whether you want this or not. And if you do, I’ll be more than willing to stay. Global footprints are global footprints. I’m not using this as a threat, but there are some parts of the world that are desperately looking for capacity utilization, where infrastructure exists, is in place and is operational.”

The incentives sought for the new minivan production have been reported by Canadian newspaper Globe and Mail to be around $637 million, which would help Marichonne’s vision of an FCA capable of challenging larger automakers such as General Motors and Volkswagen.

Meanwhile, Canada is bolstering its Automotive Innovation Fund over the next two years by an additional $456 million (USD, or $500 million Canadian) over the $288 million (USD) already invested in six projects since 2008. The money is meant to attract all automakers in Canada beyond Chrysler, such as Ford, whose next-generation Edge will be built in Oakville, Ontario following a $640 million revamp by the automaker, and a $65 million investment by the Canadian government.

Though most of the Fiat-Chrysler merger has been worked out, Marichonne is doing all he can to remove distractions around the decision as to where new minivans will be constructed:

“We’re trying to remove all politics and noise around this issue. It’s a very simple investment call. We’re ready to go. We’re at the table. The car is ready. We’re ready to build minivans. Somewhere.”

#Canada #FiatChryslerAutomobiles #FinanceTalks #GovernmentInvestments #Manufacturing #Minivans #SergioMarichonne

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2 of 63 comments

NeilM on Feb 14, 2014

Note to author: One way to forfeit all credibility is to misspell the name of the person you're writing about.

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El scotto on Feb 14, 2014

With every FCA and Sergio story why don't we get to know what they're thinking in Turin?

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