Tuesday, June 9, 2009

Chrysler and Windsor at the Brink


The big news in the auto sector today is the U.S Supreme Court's stay on Chrysler's sale to Fiat. With deadlines looming, the deal is looking increasingly shaky.

This is devastating news for Windsor, already ground zero in Ontario's manufacturing meltdown. There is little indication of what effect liquidation would have on Chrysler's pension obligations. And with unemployment already nearing 15% and Detroit in a state of collapse, the prospects for this manufacturing centre are particularly grim.

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