Auto analyst and industry researcher at the University of Windsor, Tony Faria has long criticized the federal government for the size of the auto innovation fund.
Now that it will grow to $680 million it still may not be enough. Faria says Canada can now compete with other countries that would jump at the chance to land Chrysler.
“If he went to Mexico and said I have $2.3 billion to spend, he would get a chunk of support from any government,” Faria says.
The auto analyst says Fiat Chrysler Automobiles, CEO, Sergio Marchionne could do it and build a whole new plant within two years.
However analysts don't think Chrysler is ready to wash its hands of Canada or its productive workforce. Chrysler is reportedly asking for a minimum of $400-million to be shared by both upper levels of government.
“In order to compete globally we have to be part of that competition,” says Ontario Premier, Kathleen Wynne. “Are we willing to make those investments? Absolutely.”
“By walking from this you would be walking away from 40,000 jobs. How do you do that politically?” says auto analyst Denis DesRosiers.
DesRosiers warns just because the money is ear-marked by the feds and talks have started with Chrysler doesn't mean this is a done deal.
“You want to get an automotive plant? Three words. Cut a cheque,” says DesRosiers. “In this case, cut a big cheque.”
