Chrysler’s warning to Canada is “gamesmanship,” Ontario official says
A day after Chrysler Co-President Tom LaSorda warned the Canadian government it needs loans and labor concessions to keep production in the country, Ontario’s economic development minister labeled the ultimatum as “gamesmanship.”
“It’s a ham-handed way of saying what’s always been the case”: Chrysler needs money and it also needs to present a clear viability plan to the Canadian government, said Michael Bryant, the government official, to the Business News Network in Ontario.
Chrysler is asking the Canadian and Ontario governments for $2.3 billion (U.S. dollars) in loans. At the same time, the automaker is lobbying the U.S. government for another $5 billion in loans beyond the $4 billion it has already received.
A BNN host asked whether Chrysler is just articulating that it could protect U.S. jobs and cut off foreign operations. Bryant replied: “There’s a reason why in St. Louis there was, it was closed down, and Windsor, it was kept. Windsor is profitable. In fact, (LaSorda) acknowledged that the plant in Windsor is very profitable.”
In October, Chrysler idled the Fenton minivan plant, where workers assembled the Grand Caravan, Caravan cargo van and an export version of the Chrysler Town & Country. The automaker consolidated minivan production to its Windsor plant.
The BNN interview can be viewed on The Globe and Mail newspaper’s website. For more information on LaSorda’s comments and how they relate to the idled Fenton minivan plant, read today’s story in the Post-Dispatch.
Thank GOD the Canadian government are not complete idiots like our government is. Giving in to every request from a private equity firm that bought a manufacturing company to split them up and make some money. Well, they have made some money and gotten lots of free money for GMAC and Chrysler financial both of which they own or have a huge piece of. The sharks can smell the blood in the water. Feed them some more CHUM. $$$$$$
I would like 5 minutes in a room with LaSorda to sort this all out.
Extortion, plain and simple. Last month Chrysler was the top selling automaker in the Canadian market. Can they say that about any other market? And this is how they address Canada? “Give us a loan, forgive our over-due taxes, and help us crush the union, or we’re packing up and leaving”. The Canadian government should seize all their assets, and spend half the loan-money to adequetly severance the workers.
Couldn’t agree more…AJ
Mr Lasorda does not quite get it. The Dalmer 20% stock cannot be swapped for debt to make room for the Fiat deal until the Chrysler back taxes owing to Canada problem is settled. Did he not realize that the Canadian government can kill his company at any time? Did he not realize how angry the Canadian public is at both Chrysler (& GM) right for all the government concessions his company has been given since 1980.
They have taken a $500m lien on the Brampton, Ontario plant and want $335m cash now.
That is great, the Canadian government calling in their loans. I would like to see how that works out? I doubt they have any CHANCE of getting a dime let alone a dollar, then multiply that by 335 million. Does anyone think the US will get a dime back from Cerberus? Because Chrysler does not exist anymore. It is a compilation of Fiat/Daimler/and the US and Canadian government. I like that at least the Canadian’s have a pair.
“There’s a reason why in St. Louis there was, it was closed down, and Windsor, it was kept.”
?? There was what??
Lockshmee,
Regarding the quote on St. Louis from Bryant: If you watch the video that’s posted, you’ll hear Bryant saying exactly what I’ve written. I quoted the exact words he said, so his trail off after “there’s a reason why in St. Louis there was…” was not an accident or omission. Thanks. — Angela Tablac, St. Louis Post-Dispatch
Tired of big 3 welfare bums, any comment on the senator from Toyota giving taxpayer money to get the Toyota plant located there? Oh, I’m sorry, I meant the senator from Alabama.
LaSorda was told either he gets some concessions from Canada or his sorry ass is GONE. If I was the Canadian government I would tell him to shove off. EY?
I paid a lot of taxes on my wages from Chrysler and want them back. Can I get a concession on those taxes so I can keep my houses longer? Doubt it.
Go pound sand LaSorda. LaSorda is a watery feminine product in a bag.