DaimlerChrysler drops plan for new plant

CANADA: Reacting to the decision announced on May 22 by DaimlerChrysler to drop plans for a new assembly plant for pickup trucks in Windsor, Ontario, the head of the Canadian Auto Workers union, Buzz Hargrove, expressed anger and deep disappointment. In a press statement released by the CAW, the union's president said that the new plant could have been a "major decision to reverse the downward trend of auto, the most important industry in the country," but he blamed the federal and provincial governments for not doing enough to make sure the plant became a reality. Although the automaker said the project for the Windsor plant would not be economically viable, the union believes the two issues standing in the way of implementing the investment agreement, which had been reached during bargaining in the fall of 2002, are lack of federal and provincial government support, and the rising value of the Canadian dollar. The CAW president has written to Canada's prime minister, Jean Chrétien, to urge him to convene a meeting of the key stakeholders in the project for the Windsor plant, in order to consider the economic hurdles to the project and work together to see if the obstacles can be overcome. Windsor is just across the border from Detroit, USA. According to the Detroit News and just-auto.com, the Chrysler group is trying to cut costs and boost revenues at a time when U.S. car and truck demand is down 4 per cent so far this year, and its own sales reduced 7.2 per cent.