What The Chrysler Sale Means For Windsor

So Windsor is about to take another hit with the purchase of Chrysler by Cerberus. Just how bad will it be is the big question that has to be answered!

In passing, politicians should stay out of business matters until the dust settles. Last Friday, Michigan Gov. Jennifer Granholm thought Magna would be an excellent purchaser for Chrysler.

Remember back in November, 2005 when there was talk that Chrysler might move its head office out of Windsor:

• "Losing DaimlerChrysler's headquarters to either Mississauga or Toronto would be a devastating blow to Windsor in terms of white-collar jobs and prestige, especially given that the City of Windsor has poured in excess of $40 million into the downtown office tower development where DaimlerChrysler is the lead tenant."

Well it could be worse than that now. Not only should we expect there to be a strong move to reduce staff at the Chrysler headquarters at the Canderel building (will there still be a Chrysler Canada in anything but name by the time the blood-letting is over) but this could turn into a disaster in more ways than one.

• "Cerberus led a group of investors that bought a 51 percent stake in finance company GMAC from parent GM, the world's largest maker. Detroit-based GMAC makes loans for purchases of homes and cars."

Why wouldn't Cerberus roll Chrysler Financial into that unit. It's a very profitable arm. Is there a need for a separate unit to manage the finances of the Chrysler business or can it be done with the computers of GMAC? If there is a desire to streamline, how many jobs will be lost in the Canderel building and other Chrysler locations?

Just a nagging question....I had heard a rumour that if Chrysler moves out, the City might be on the hook for the rent of the empty space. I wonder if that is true. Perhaps the Mayor could let us know....sure he will!

Should the Windsor Assembly Plant expect more job losses and worker pay and benefit reductions. Probably yes to both.

• "Cerberus and other private-equity firms are interested in the Auburn Hills, Michigan-based automaker because they expect to profit on their investment by reducing wages and paring other costs such as pension expenses."

It made a bid for Delphi Corp.

• "but told the company last month it was withdrawing the bid because it was not satisfied with concessions offered by the United Auto Workers."

What was interesting was this comment by Buzz Hargrove that ought to cause a great deal of concern to workers here:

• "It pissed me off greatly that these discussions had led to a final deal (Sunday) and there had been absolutely no dialogue with our union. We still are a player here."

It should be remembered that CAW and Cerberus have a history. They "clashed over major job cuts and pension plan changes at Air Canada." Is the UAW President smarter, or at least more political, by saying that he supports the deal since he may be able to take jobs away from Canada if the CAW maintains an aggressive posture?

Windsor may lose out also because

• "Cerberus's auto division is run by former Ford executive David Thursfield" and "Cerberus may have established itself as the front-runner by hiring former Chrysler Chief Operating Officer Wolfgang Bernhard as an adviser...Bernhard, who left in 2004 after four years as COO, has a strong personal relationship with Zetsche."

Where does this leave Windsor born, Chrysler CEO Tom LaSorda? Has Canada lost a strong voice in the boardroom?

I will let poeple more connected to the auto industry tell us what the significance of all of this means but all I can see is more darkness for this City.

Isn't it time that the Mayor and Council open up their eyes to some infrastructure improvements to tide us over or will they remain that pig-headed?