Chrysler, Canadian firm make unusual deal

June 13, 2008

Chrysler LLC may lease part of a Kokomo transmission plant and some of its employees to Canada-based Linamar Corp., reports The Wall Street Journal. The unusual deal could save the Michigan-based automaker $60 million; Chrysler and other U.S. automakers are struggling to adjust to a consumer shift to cars from trucks and underused plants. The Canadian company would make parts for Chrysler and others not in the auto industry. It would occupy more than 250,000 square feet at the Kokomo plant and use 200 Chrysler union workers, paying part of their wages to Chrysler. The deal could close this summer.

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