Chrysler Group Announces Decision Not to Build Proposed Windsor Manufacturing Facility

After months of analysis, Chrysler Group President and Chief Executive Officer Dieter Zetsche has announced that a proposed new manufacturing facility, incorporating innovative supplier initiatives for Windsor, Ontario, will not be built because of business viability issues.

The “greenfield” concept study was initially linked to contract negotiations last year with the Canadian Auto Workers (CAW). The innovative labor agreement reached with the CAW was the first step for the proposed project. A Chrysler Group project team was put in place to begin exploring the business viability with potential suppliers and governments.

The business environment has significantly changed since last October, said Zetsche. “The state of the automotive market has created a formidable hurdle,” he said, “especially for a small, entry-level vehicle such as the one we were considering. Additionally, competitive pricing, ongoing incentives and increasing overcapacity in North America led us to conclude that this is not the time to add new capacity.”

Zetsche added that even though a viable business case could not be made, the business model followed on the project is worth considering in the future.