Published: Sat, October 17, 2020
Economy | By

Fiat Chrysler to invest in electric vehicle producton in Canada

Fiat Chrysler to invest in electric vehicle producton in Canada

Mr. Dias said with the investment, the factory will continue to produce minivans and launch, starting in 2024, production of either a plug-in hybrid or battery-powered vehicle.

Fiat Chrysler Automobiles will invest between $1.35 billion and $1.5 billion in its Windsor assembly plant in Canada to build electric vehicles as part of a tentative deal with Canadian autoworkers, Unifor National President Jerry Dias said on Thursday.

He expects jobs to rise by over 2,000 more than exists in the Windsor Assembly Plant today, including 425 jobs that are now on layoff.

The negotiations between Fiat Chrysler and Unifor came after the union reached a deal last month with Ford Motor Co., creating a template for talks with the other Detroit automakers. That $1.95 billion deal covers some 6,200 Unifor members.

"This platform will have the ability to build multiple vehicles", he said, adding that it can "turn on a dime based on consumer demands".

"Not only is Fiat-Chrysler maintaining the current portfolio but they will be investing three derivatives to enhance the current portfolio", Dias said.

"Those products will lead to the recall of over 100 members at the Etobicoke casting plant", said Dias.

2020 Chrysler 300

Additionally, the headcount at Fiat Chrysler in Canada is expected to grow by almost 2,000 as a result of the new platform, with workers starting to come on board in 2023. Fiat Chrysler a year ago unveiled plans to eliminate a third shift at the Windsor plant, which put 1,500 people out of work. Today, Dias said the new jobs added will include calling back 425 workers and adding more than 1,500 new jobs to the Windsor region.

Meanwhile, the Brampton, Ont., plant, which makes the popular Chrysler 300, Dodge Charger and Dodge Challenger vehicles, will also see investments.

Altogether, the deal comes with a total of $1.42 billion to $1.57 billion in new investments, he said.

Last year, Fiat Chrysler negotiated a new contract in the US with the United Auto Workers that included wage increases and improved health-care benefits.

Unifor, Canada's biggest private-sector union, announced its tentative three-year agreement with Fiat Chrysler late Wednesday, just ahead of a midnight strike deadline.

Unifor members are scheduled to vote on the agreement on Sunday. That investment by Ford was supported by $590 million in funding from the federal and Ontario governments.

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