Auto plant a no-go

DaimlerChrysler has announced it will not build a much-publicized, new $1.6 billion plant in Windsor, ON. The company said on-going weak market conditions in the U.S. have necessitated changes in the carmaker’s business strategy, including canceling plans to build a new assembly plant with a number of supplier partners. The plant, which would have created 2,500 jobs, would have been used to manufacture a small entry-level vehicle.
DaimlerChrysler has been attempting to secure financial support from the federal and provincial governments to build the plant. According to reports, the OEM was also considering building the plant in Mexico. The company said it will now invest $1.4 billion to upgrade its Brampton, ON assembly plant. The investment would be used to re-tool the plant for production of the Dodge Magnum and the Chrysler 300C. The plant currently assembles the Concorde, Intrepid and 300M models.