• Skip to main content
  • Skip to primary sidebar

Auto Trends Magazine

Car reviews, industry news, & advice.

Archives for February 17, 2014

Fiat Chrysler Weighs Its Minivan Options

February 17, 2014 by admin 1 Comment

Chrysler presses Canada for financial support.

***Update: Chrysler Withdraws Financial Assistance Request to the Federal and Provincial Governments in Canada***

It was supposed to have been settled by now. If everything was done according to plan, Chrysler would have identified the brand slated to receive the next generation of its minivan and the one that would get its crossover derivative.

Chrysler minivans: Made in Canada.

A collection of Chrysler minivans, all built in Canada.


CEO Sergio Marchionne made it plain a few years back that only one minivan was needed with either the Chrysler Town & Country or the Dodge Grand Caravan transitioning to a crossover utility vehicle based on the platform underpinning the next generation minivan. That announcement has yet to be made, but minivan-related news is front and center.

Making an Investment

Instead of brand decisions, we now have Fiat Chrysler Automobiles (FCA) asking for as much as CAN$700 million in incentives from federal and provincial governments to update its two Ontario manufacturing plants. That contribution would partially defray the CAN$3.6 billion Fiat Chrysler Automobiles says it will cost to retool Windsor and update Brampton.

The Windsor plant has been the exclusive builder of Chrysler minivans since Dodge and Plymouth models were introduced in 1983. Brampton builds Chryslers large cars including the Dodge Charger and Chrysler 300. Together, the two assembly plants represent FCAs entire manufacturing presence in Canada.

That presence could be jeopardized if both Ontario and Canada decide not to contribute funds. For its part, the Canadians want FCA to pledge a long-term commitment to build cars in Canada reports Toronto’s Globe & Mail. The federal government recently announced that it wound invest another $500 million in its Automotive Innovation Fund, but it hasn’t promised that those funds will go to Fiat Chrysler. At least not exclusively.

Minivans to Mexico?

Marchionne raised eyebrows last month at the Detroit auto show when he said that the company had alternatives to continuing to build minivans in Windsor, reports the Wall Street Journal. That may include shifting product to Mexico where labor costs are much lower than in Canada. Of the three North American Free Trade Agreement (NAFTA) countries, Canada’s labor costs are highest followed by the United States and much further down the list, Mexico.

Canada and Ontario contributed billions of dollars in loan money in 2009 to help General Motors and Chrysler, loans that have since been paid back. Still, the country has shed more than 50,000 automotive jobs since 2000 and another 8,000 direct manufacturing jobs would be affected if Chrysler pulled up stakes. Tens of thousands of supplier and spin off jobs would also likely go away. In all, Chrysler employs 10,245 people in Canada as of Jan. 2014

Meanwhile, Down Under

A Chrysler exit would not decimate the country’s automotive industry composed of multiple manufacturers including GM, Ford, Toyota, and Honda. And, unlike Australia, the Canadian industry is heavily tied to the US and Mexico, with suppliers, components, and new vehicles moving back and forth across each border. Yet, it also raises the stakes for the remaining manufacturers, each competing in a global industry where maintaining operating costs is crucial for competitiveness and the bottom line.

Australia’s auto industry is in dire straits with Toyota following Ford and GM by announcing the end of domestic manufacturing within the next four years. The prospect that Canada might someday lose its manufacturing base and go the way of Australia is not lost on provincial and federal government leaders. What type of proposal they make to keep Fiat Chrysler from fleeing might also set a precedence for other manufacturers to follow as they weigh their own needs.


Photo courtesy of Fiat Chrysler Automobiles, N.V.

See Also Australia: Auto Manufacturing Done in 2017

Filed Under: Automotive News Tagged With: Australia, Brampton, CANADA, FINANCES, MANUFACTURING PLANTS, MEXICO, Ontario, SERGIO MARCHIONNE, Windsor

Primary Sidebar

Recent Posts

  • Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival
  • GM Launches BrightDrop, Its Commercial EV Brand
  • The Refreshed and Handsome
    Lexus IS 350 F Sport
  • What We Know About the All-New 2021 Jeep Grand Cherokee L
  • The All-New and Formidable 2021 Nissan Rogue Crossover

Recent Comments

  • Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival — Auto Trends Magazine on Buying Guide: 2020 Kia Sedona
  • Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival — Auto Trends Magazine on Kia Telluride: Opulent, Large Crossover
  • Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival — Auto Trends Magazine on Class Act: 2017 Chrysler Pacifica
  • Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival — Auto Trends Magazine on Highlights of the 2020 Toyota Sienna
  • GM Launches BrightDrop, Its Commercial EV Brand — Auto Trends Magazine on Will the Electric Vehicle Boom Create New-Found Dependencies for Foreign Minerals?

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008

Categories

  • Auto Parts
  • Auto Shows
  • Automotive Career
  • Automotive News
  • Book Reviews
  • Car Tips
  • Classics & Discontinued Models
  • Commentary
  • Commercial Vehicles
  • Concept Vehicles
  • Dealers
  • Engineering & Technology
  • Fleet
  • Fun News
  • Maintenance & Repairs
  • Motorsport
  • New Car Reviews
  • New Models
  • Ownership Experience
  • Product Reviews
  • Special
  • Specifications
  • Uncategorized

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

New!
Check out our Jobs Board!

via GIPHY

Subscribe to Auto Trends

Subscribe in a reader

Social Media

Visit our social media pages:
Facebook
Twitter
Google+
Pinterest

Where is Matt Currently Published?

The Carolinian (new car reviews)
NAPA Know How Blog
On the Road Again

Pages

  • About
  • Authors List
  • Automotive Brochures
  • Contact
  • Industry Jobs
  • Write
    • Style Guide

Categories

Recent Posts

  • Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival
  • GM Launches BrightDrop, Its Commercial EV Brand
  • The Refreshed and Handsome
    Lexus IS 350 F Sport
  • What We Know About the All-New 2021 Jeep Grand Cherokee L
  • The All-New and Formidable 2021 Nissan Rogue Crossover
  • Fuel-Efficiency and AWD Champion: 2021 Toyota RAV4 Hybrid
  • Midsize Performance Master: 2021 Hyundai Sonata N-Line
  • Performance Hatchback: The All-New 2021 Mazda Mazda3 Turbo!
  • NACTOY Finalists For 2021 Offer Familiar and Futuristic Choices
  • Super Trooper: Nissan Titan Pickup
  • Behind the Wheel of the Popular 2021 Toyota Corolla Sedan
  • Lucid Motors Completes Arizona Factory
  • A Robust Turbodiesel Comes to the Chevrolet Silverado 1500
  • Mid-Engine Masterpiece: The Eighth-Generation Chevrolet Corvette Stingray
  • Compact Performance:
    2021 Cadillac CT4-V
  • All-Wheel Drive Supplies the Nissan Altima With a Competitive Edge
  • Return of the Toyota Venza!
  • Lexus Brings a Convertible to the Gorgeous LC 500 Line
  • Stellantis Logo Revealed by Peugeot, Fiat Chrysler Ahead of Spring Merger
  • Preview: 2021 Nissan Rogue Crossover
  • How to Fix a Broken Rivian Vehicle
  • Cadillac Gets Most Things Right
    With the XT6 Crossover
  • The High Potency Dodge Challenger SRT Hellcat Redeye Widebody Coupe
  • The All-New Chevrolet Trailblazer Forges Urban Paths
  • The Small Infiniti QX50 is Big on Tech and Engineering Features
  • Toyota Brings the TRD Treatment to the Midsize Camry Sedan
  • The Kia K5 Outclasses Most Competitors, Including the Departing Optima
  • Can the Toyota RAV4 TRD Off-Road Handle Tough Terrain?
  • Subaru WRX Showcases Its Performance Chops
  • Infiniti Overhauls QX80 Trims and Makes This Important Safety Feature Standard
  • Ford F-250 Super Duty and a Trail-Stomping Tremor Package
  • A Cut Above: Mazda’s Mazda3
  • The Highly Efficient Hyundai Ioniq
  • Volkswagen Atlas Revels in its Strengths
  • General Motors Deepens Partnership With Honda, Takes Stake in Nikola
  • Smart Concept: Jeep Grand Wagoneer
  • More Than an Encore: Buick Encore GX
  • Got a Recall? There’s an App for That.
  • Refreshed Nissan Titan Makes Its Case
  • BMW M235i: Not Your Typical Coupe
  • Hot Stuff: Lexus RC F Sport Coupe
  • Will the Electric Vehicle Boom Create New-Found Dependencies for Foreign Minerals?
  • Rumors? We Got Them!
  • About Bollinger Motors, EV Startup
  • Raptor Fighter: Ram 1500 TRX!
  • White Space Wonder: 2020 Nissan Rogue Sport
  • About the 2021 Genesis GV80
  • The Toyota Supra Gets a Four-Cylinder Engine and We’re Simply Gobsmacked!
  • Jim Farley Appointed Ford President and CEO
  • 12 Things We LOVE About the Dodge Charger R/T Scat Pack
February 2014
S M T W T F S
 1
2345678
9101112131415
16171819202122
232425262728  
« Jan   Mar »

Copyright © 2021 · News Pro on Genesis Framework · WordPress · Log in