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Marchionne Tries a Familiar Tack to Win Canadian Concessions

Chrysler-Fiat CEO Sergio Marchionne tells reporters the company is "not even close" to deciding whether to build its next-generation minivan in Canada.

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Chrysler-Fiat CEO Sergio Marchionne tells reporters the company is "not even close" to deciding whether to build its next-generation minivan in Canada.

Government officials say the company is demanding "substantial" aid to maintain minivan operations in Windsor, Ont. Marchionne suggests Chrysler may decide by the end of March whether to stay or relocate.

Canada, he opines, must determine "whether you want this or not." He indicates Chrysler is being courted for its minivan business by Mexico and the U.S. and says they're likely to present richer incentives than the reported C$700 million ($639 million) Canada has offered so far.

"I'm not using this as a threat," Marchionne threatens, "but there are some parts of the world that are desperately looking for capacity utilization, where infrastructure exists, is in place and is operational."

The comment has a familiar ring. In 2010 Marchionne warned that Fiat might move production out of Italy unless the company's labor unions there agreed to work rule concessions.

The unions eventually complied. But it wasn't until after he declared, "Italy has to show us if the country wants to remain a car manufacturing nation," and added that "the world is full of locations that welcome Fiat investments."

Gardner Business Media - Strategic Business Solutions