Chrysler Asks Cdn Government For Loan, Brampton Plant Could Be Spared
Posted February 20, 2009 12:00 pm.
This article is more than 5 years old.
There was good news early in the day from General Motors, and late Friday, there was finally news from Chrysler: The automaker announced it had requested loans from the federal and provincial governments to support its Viability Plan.
While they haven’t divulged numbers, Chrysler indicated they were requesting a “proportional share” of the funding offered by the U.S. government.
Over 3,000 of Chrysler’s 9,400 Canadian jobs are in Brampton, and after U.S. sales of Chrysler products plummeted 30 per cent in 2008, and 55 per cent in January, there were fears that the shuttered plant would be closed for good.
“It’s discouraging that they have already had significant shut down periods,” admits Brampton Chamber of Commerce CEO Gary Collins.
The plant has been shuttered since January. It’s only temporary, but workers are reeling – they had just returned after a closure in December.
However, that doesn’t appear to be the case.
“The Viability Plan does not call for Canadian plant closures,” the company announced in a press release.
Instead, they plan to:
- reduced fixed costs
- invest in new vehicles and technologies
- form strategic alliances and partnerships
“When employees aren’t spending money that’s not good for our local economy here. And I’m concerned about job losses here,” Collins added.
“Families are stressed,” outlined Mayor Susan Fennell.
“I met with members of local [Canadian Autoworkers Union] 525 in my boardroom earlier this week. And people don’t know what their future is. What was once a solid foundation is now a complete question mark.”
Steve Robinson, a Brampton mortgage broker, agrees.
“I think the entire community is actually getting nervous,” he notes.
“Everywhere you look around and everything you hear on TV is negative…workers are seeing their hours being cut back. With their hours cut back they’re not sure how they’re going to be able to maintain the lifestyle they’re accustomed to.”
GM has said they won’t be closing their plants in Canada as part of their restructuring plans. However, the manufacturer has not divulged if lay-offs will be in the cards.
File photo.
