Ontario Premier To Convince Fiat To Open Facility In Canada

May 21, 2008 10:46 a.m. EST

Turin, Italy (AHN) - Ontario Premier Dalton McGuinty is in Turin, Italy to woo automaker Fiat to set up a facility in Ontario. The move is a bid by the premier of Canada's largest province to revive the ailing vehicle manufacturing industry based in Ontario after recent setbacks have been suffered by the three major carmakers.

General Motors is set to reduce a shift and close a facility in Oshawa, while the workers of GM, Chrysler and Ford have agreed to a Canadian Auto Workers'-initiated labor agreement that freezes wage hikes and cuts benefits.

At a public lecture at the London School of Economics Monday, McGuinty said he plans to meet with Fiat about their interest in building a North American assembly plant.

Among the advantages that McGuinty cited were having the best car makers in North America, a center of excellence in vehicle assembly and incentives for auto manufacturers.

Fiat reportedly is searching for a new factory site to build a facility that would make the luxury vehicle Alfa Romeo. McGuinty pointed out Ontario's car manufacturers have experience producing high-end models, stressing outside Japan the only place where Toyota builds its Lexus units is in Ontario.

It was under McGuinty's premiership that Ontario became the top car maker in North America, part of the $7 billion investments that the province attracted during his first term.