Tuesday, July 17, 2007

Chrysler shelves plans for Canadian-made luxury car

Tough emissions rules, high gas prices kill deal

Chris Vander Doelen, Windsor Star; CanWest New Service

Published: 1:51 am

WINDSOR, Ont. - Chrysler has killed plans to build the Imperial luxury sedan in Canada, citing high gas prices and tightening U.S. government fuel regulations.

The Imperial program would have meant a $700-million US investment in Chrysler's Brampton, Ont., assembly plant north of Toronto and assured work for its third shift after production was to have begun in the summer of 2009.

In return for the proposed investment, in February the company sought and eventually secured a "shelf agreement" from the CAW's Local 1285 to eliminate a special bonus play at the plant.

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