The negotiations, detailed by The Globe and Mail, may have broad implications for the company’s Canadian operations. The automaker promises to use the aid to help fund a $2.3-billion modernization and expansion project at its Windsor, Ontario plant, along with another investment plan for a Brampton, Ontario facility.
The federal government separately announced plans to add $500 million to its general Automotive Innovation Fund, in an attempt to help create and maintain industry jobs in Canada.
Chrysler’s two Ontario plants already employ approximately 8,000 workers, though the expansion plans, including research-and-development operations for the company’s next minivan platform, are expected to add several thousand jobs.
The company already threatened to kill the expansion plans, and hinted that it could shutter the facilities, if the Canadian governments don’t play ball. Officials have signaled a willingness to consider additional incentives, despite potential backlash over the large sum.
The Canadian government has yet to confirm the reported numbers or announce a final decision.
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