Brampton has best chance at new Challenger, CAW says
Chrysler expected to give go-ahead for sports coupe today

Plant already builds models on similar chassis, union says
Jul. 1, 2006. 01:00 AM
TONY VAN ALPHEN
BUSINESS REPORTER


DaimlerChrysler is reviving the Challenger sports coupe and will likely build the model in Brampton rather than in the United States. because it makes more business sense, a senior union official says.

Leon Rideout, plant chairperson for the Canadian Auto Workers union at DaimlerChrysler's assembly operation in Brampton, said yesterday that although the company hasn't announced a site, his location is the logical choice because of lower costs.

The auto giant plans to announce today that the Dodge model, which stopped production in 1974 after less than five years, will return in 2008.

Rideout said the Challenger's platform or chassis is the same as existing models in Brampton, and another competing location in St. Louis would require a lot more investment for the new coupe. That plant now builds minivans off a different platform.

Furthermore, Rideout said, sales of the Chrysler 300, Dodge Charger and Magnum models at the Brampton plant will probably soften by 2008 so a niche model like the Challenger would fit perfectly and keep the operation on three shifts.

"All things considered, it certainly makes more sense to do it here," he said.

Rideout said DaimlerChrysler has told CAW officials that the company will decide on the site for the Challenger within the next 90 days after more meetings with the union about ways to cut production cuts.

The company has been considering whether to reintroduce the Challenger since January after it made a smash debut as a concept car at the North American International Auto Show in Detroit.

An internal DaimlerChrysler document, obtained by the Toronto Star in April, suggested that the company was proceeding with plans to build the vehicle again.

The document said the company estimated annual production of 50,000, a start-up in April 2008 and an investment of $145 million (U.S.).

The document surfaced in discussions between the company and union about local contract changes to improve productivity and lower operating costs at the plant and its minivan operations in Windsor. DaimlerChrysler is also considering the assembly of minivans for Volkswagen in Windsor or St. Louis starting in July 2008.

The two sides have not reached a deal on any contract changes.

Among other things, the company has broached the issue of possibly eliminating premium pay for workers when vehicle demand climbs and their work hours increase from 7.5 to 8 hours a day. DaimlerChrysler would also like to reduce costs by contracting out construction crews and janitorial services.

DaimlerChrysler would not comment yesterday on whether it will re-introduce the Challenger today, but reports in Detroit newspapers said it would announce the move at the Pepsi 400 NASCAR race in Daytona Beach, Fla.

The rear-wheel drive concept car at the Detroit show featured a powerful engine and many of the same styling cues as the classic Challenger coupe of the 1970s. It included an "egg-crate' grill, twin hood scoops, pistol grip shifter, long front end and short back.