February 21, 2005

Chrysler near decision on $300M paint shop

TORONTO

DaimlerChrysler Canada Inc. is close to making a decision on building a paint shop worth more than $300 million at its huge assembly complex in Windsor, Ont.

The company has solicited construction bids but is still negotiating with the provincial government for aid and with the Canadian Auto Workers for shop floor changes, said a top official for parent Chrysler Group.

Frank Ewasyshyn, executive vice-president of manufacturing, said the company likely will make a decision within the next month.

“I guess it depends on all the parties involved,” he said in an interview at the Canadian International Auto Show.

“It’s a big investment and we’re looking for some funding from the provincial government.”

The government aid would be part of a package also including assistance for DaimlerChrysler’s booming assembly plant in Brampton, Ont., which has added a third shift and 900 jobs to meet demand for its big Chrysler sedans.

A new paint shop would represent the second phase of improving the Windsor plant’s capabilities for production of Pacifica luxury station wagons and Dodge Caravan and Chrysler Town & Country minivans.

Chrysler completed the first phase more than 20 years ago and wants to improve quality and efficiencies, Ewasyshyn said.

A paint shop would not create any new production jobs but would assure the plant’s future for several years.

CAW president Buzz Hargrove said the paint shop is “absolutely essential and critical” for the plant’s future.

Hargrove described negotiations concerning management requests for new work rules and other changes as difficult. Talks broke down recently but negotiations are expected to resume.

DaimlerChrysler says it has spent $2.6 billion in Canada during the last three years, primarily on major overhauls in Windsor and Brampton. It’s currently the country’s second-biggest auto maker.

The biggest, General Motors of Canada, has spent heavily in recent years to upgrade its paint operations for two assembly plants in Oshawa, Ont.

The Canadian Press

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