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Chrysler Group Ditches Plans for New Canadian Plant.

Knight Ridder/Tribune Business News

| May 23, 2003 | COPYRIGHT 1999 Knight-Ridder/Tribune Business News. (Hide copyright information)Copyright

By Jeffrey McCracken, Detroit Free Press Knight Ridder/Tribune Business News

May 23--The Chrysler Group's decision to scrap plans for a new $1.2-billion assembly plant in Windsor strains the automaker's relations with the Canadian Auto Workers union, which saw the pledge as crucial to wrapping up last year's national labor talks.

Chrysler says the pledge to build the plant -- outlined in an unpublished letter late in the talks -- was always dependent on the economy, and it would "not be responsible" to build it now.

The decision is a blow to Canada, which has lost about 13,000 auto jobs in the last four years and has seen new plants go to Mexico and the southern United States. CAW …

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