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Marchionne Mulls Building Next Chrysler Minivan in Mexico, not Canada

Motor Trend logo Motor Trend 2/14/2014 Karla Sanchez

Chrysler/Fiat boss Sergio Marchionne is ready to start building minivans, but the only problem is he doesn't know where. That's because the automaker is working out a deal with Canada for loans to help it revamp its plants in Windsor and Brampton, Ontario. But if that doesn't work out, there's always plan B.

The automaker is in talks with the federal and provincial governments in Canada for economic incentives to help cover the cost of a $2.3 billion (CAD) overhaul of its two Canadian plants, but according to a Bloomberg report, a decision is "not even close" to being made. Much is at stake for Chrysler. The second-best-selling Town & Country and third-best-selling Dodge Grand Caravan are currently built at the Windsor factory, and the investment going towards upgrading it and the Ontario plant would be the biggest one Fiat has made since Chrysler exited bankruptcy in 2009. © Provided by MotorTrend

If Marchionne is unsuccessful in reaching an agreement with Canada, there are other options. Jurisdictions in the U.S. and Mexico are willing to replace Windsor as home of Chrysler’s minivan plant, and they could offer better incentives than Canada, Marchionne said in the report. After all, Mexico is expected to surpass Canada as the biggest exporter of cars to the U.S. in 2015. Mazda3 production just began at a new assembly plant in Mexico, while Honda recently opened a CVT plant neighboring a new assembly plant in Celaya.

Source: Bloomberg

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