Chrysler threatens pull out from Canada

OTTAWA — Firing a stern warning shot across the bows of federal politicians and the CAW, Chrysler President Tom LaSorda said the carmaker will have no choice but to cease Canadian operations if it doesn’t get government aid and concessions from its employees’ union.

According to Canadian media, LaSorda told a parliamentary committee that Chrysler’s labor costs are $20/h more than its Japanese rivals in Canada.

"Chrysler LLC cannot afford to manufacture products in a jurisdiction that is uncompetitive, relative to other jurisdictions," he was quoted as saying. "Currently, Chrysler CAW (Canadian Auto Workers) are not competitive," he said.

The company is asking for roughly $2.3 billion (U.S.) from the Canadian and Ontario governments on top of tax relief.

Last week, GM said it still needed about $6 billion to save Canadian plants after the CAW made very moderate concessions. 

LaSorda didn’t apologize for his bluntness, telling reporters afterward "ambiguity doesn’t help the process."

Chrysler has 9,400 direct employees in Canada,, plus another 25,900 that work at dealerships.

According to the Toronto Star, about 100,000 Canadians jobs are linked to Chrysler Canada when suppliers are factored in. On top of that are service providers trucking companies and the railways.