A "New Chrysler" emerges: Canadian production to start soon

Chrysler Group LLC and Fiat Group have finalized their global alliance, forming a “new Chrysler” that will begin operations immediately. The new company will operate as Chrysler Group LLC.

As such the Grand Caravans, 300s and Chargers could be rolling off the assembly lines at Chrysler Canada plants within three weeks following a two-month shutdown.

Although Chrysler would not confirm dates, the Canadian Auto Workers union said yesterday that company officials have suggested privately they want to reopen the minivan plant in Windsor, a car operation in Brampton and an engine casting factory in Etobicoke by June 29.

About 8,700 workers at Chrysler Canada Inc.'s operations have been off the job since the end of April, when the parent company gained court protection from creditors in the United States. Thousands of other workers at scores of parts makers that supply the assembly plants have also been idled.

Chrysler had wanted to build autos during a 30- to 60-day bankruptcy period but uncertainty over the process and payments prompted some edgy suppliers to stop deliveries. It disrupted operations here and in the U.S., where about 27,000 more workers are on layoff.

As part of the alliance, Fiat will contribute technology, platforms and powertrains for small- and medium-sized cars to Chrysler, allowing the company to offer an expanded product line. Chrysler will also have access to Fiat’s international distribution network, with particular focus on Latin America and Russia.

Finally, in Canada, Reid Bigland will continue to lead the company’s operations as president and CEO of Chrysler Canada.

[Source: The Toronto Star]