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Fiat Chrysler to invest up to $1.5 bln to build EVs at Canadian plant

Credit: REUTERS/MASIMO PINCA

Fiat Chrysler Automobiles NV will invest between $1.35 billion and $1.5 billion in its Windsor assembly plant in Canada to build electric vehicles as part of a tentative deal with Canadian autoworkers, Unifor National President Jerry Dias said on Thursday.

Oct 15 (Reuters) - Fiat Chrysler Automobiles NV FCAU.N will invest between $1.35 billion and $1.5 billion in its Windsor assembly plant in Canada to build electric vehicles as part of a tentative deal with Canadian autoworkers, Unifor National President Jerry Dias said on Thursday.

The auto union said FCA would invest in a state-of-the-art vehicle platform that will enable the assembly of plug-in hybrid and battery electric vehicles, with at least one new model in 2025.

The announcement comes less than a month after Unifor said Ford Motor Co F.N would invest C$1.95 billion ($1.46 billion) in its Oakville and Windsor plants.

"Not only is Fiat-Chrysler maintaining the current portfolio but they will be investing three derivatives to enhance the current portfolio," Dias said. (https://bit.ly/31rK7cr)

Unifor also said it expects to extend the life of the Chrysler 300, a rear-wheel-drive luxury car and introduce multiple derivatives of the Dodge Charger and Challenger.

The union said as many as 2,000 jobs would be added in 2024 at the Windsor plant.

Market forecasting firm LMC Automotive on Thursday said it would take until 2024 for U.S. vehicle sales to recover from the coronavirus downturn and get close to the 17 million vehicles sold in 2019.

Ratification meetings for the FCA deal will happen over the weekend, and members will vote on whether to accept the agreement on Sunday.

The union is expected to begin negotiations with General Motors Co's GM.N Canadian unit next week.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Ramakrishnan M.)

((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))

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