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March 17, 2009

Chrysler planning pull-out from Canada

CANADA - According to insiders Chrysler is already making plans behind the scenes to pull its operations out of Canada if it can't reach an agreement with the Canadian Auto Workers by the end of the month.

Chrysler Canada says it needs to cut its labour costs by approximately $20 an hour to be competitive with foreign automakers such as Toyota, which also has plants in Canada but Toyota's Canadian workers are not unionized.

Currently wages, union dues, benefits and pensions amount to approximately $76/hour. To be competitive with Toyota plants operating in Canada, Chrysler says it needs to reduce those costs to $57 an hour.

NOTE: Toyota Canada pays comparable wages and benefits, but don't have the extra cost of union dues. What this really comes down to is an END to the Canadian Auto Workers union.

See Also:
Unsold Cars Piling Up
Car Sales down 29.9%
Car sales crash in Canada
United States unemployment at 25-year high

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