New auto plant may be on hold

DaimlerChrysler Corp. may be delaying or canceling its proposed plans to build a $1.6 billion pickup truck assembly plant in Windsor, ON. The company cancelled plans to meet with two levels of government officials last week, according to a report in the Globe and Mail. Coming after the company had issued warnings about deteriorating sales in the U.S., the cancellation of the meeting to finalize details of a government incentive package has fueled speculation the OEM has put plans for the plant on hold.
The plant, if built, would create 2,500 jobs in Windsor. The city has been said to be competing with Mexico and possibly the southern U.S. to host the new facility. DaimlerChrysler has been seeking about $350 million of aid from the various levels of Canadian government. Government has offered an "incentive" package consisting of tax breaks and programs to support research and development. Speaking at the Automotive Manufacturers Parts Association annual meeting in Hamilton last month, Minister Alan Rock said he did not think it was wise to give automotive companies cash.
Sales for DaimlerChrysler products in the U.S. has declined 7% in the first four months of 2003.