Chrysler to Build Next-Gen Minivan in Canada Despite High Costs

By | March 05, 2014
In an effort to reduce costs, Chrysler hinted last month that it would consider moving production of its minivans from Canada to the U.S. or Mexico. But this week Chrysler announced it is sticking with minivan production at its Windsor, Ontario plant, at least for the next-generation of vehicles. Chrysler also announced that it is withdrawing its request for financial assistance from the Canadian government, which would have given the automaker money to retool factories for next-generation vehicles. Whether or not Chrysler minivan production stayed in Canada originally depended a lot on how much the country would offer, but now Chrysler says it will foot the bill for the necessary renovations. “Our commitment to Canada remains strong,” said Sergio Marchionne, CEO of Chrysler Group. But at the same time, he lamented the high costs of production in the country and expressed a desire that "all stakeholders involved commit to do what they can to preserve the competitiveness of the country, and in particular of the province of Ontario." "We reserve the right, as is true for all global manufacturers, to reassess our position as conditions change,” Marchionne continued, regarding Chrysler's plan for future products in Canada. Perhaps more interesting, Chrysler provided clues to the rumor that it would get rid of one of its minivans. In the announcement, Chrysler specified the Windsor plant will build the automaker's new "people carrier" architecture, which will be used for its "next minivan and derivatives." This further suggests that Chrysler will build just one traditional minivan as well as one model that may resemble an SUV. We will just have to wait and see what happens. Source: Chrysler