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Friday, 13 March 2009 14:44

Chrysler May Pull Out of Canada

A top Chrysler official warned Canadian lawmakers that it might shut down its plants in Canada if it doesn't get significant labor concessions and government aid.

"Chrysler LLC cannot afford to manufacture products in a jurisdiction that is uncompetitive, relative to other jurisdictions," President Tom LaSorda told a parliamentary committee in Ottawa, the Canadian capital.

The distressed U.S. automaker has about 9,000 employees in Canada and says its labor costs there work out to about $20 an hour more than what automakers such as Toyota and Honda pay.

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