Fiat Chrysler to invest in Canadian plants without government help, expects profitability boost from Brazilian plant

Chrysler's abrupt withdrawal makes 2016 negotiations with the workers' union particularly important.

Chrysler Group LLC has withdrawn its plan to seek financial help from the Canadian federal government and Ontario provincial government for its two vehicle assembly plants in the state, reports Reuters. However, the automaker said it remains committed to Canada, and would continue with its plans to produce next-generation vehicles at the plants while exploring "strategic alternatives". Chrysler was reportedly seeking financial assistance of USD700 million from the governments to support its USD3.6-billion investment in the plants. "It is clear to us that our projects are now being used as a political football, a process that, in our view, apart from being unnecessary and ill-advised, will ultimately not be to the benefit of Chrysler," said the automaker in a statement.