Wednesday's news of an $85-million grant from Ontario to Windsor Assembly is long overdue, a way to mend fences and should have been a lot more, says one local auto analyst.
Tony Faria with the office of auto research at the University of Windsor says it's odd for the government to provide funding after a company has already made its investment.
(Photo courtesy University of Windsor)
"Government support is usually one of the tools to get new investment, so this is an unusual way of doing it," says Faria.
Back in March, 2014 FCA withdrew its request for government funding. At that time CEO Sergio Marchionne said the company’s projects were being used as a “political football.”
"I would look at [this] as sort of the government trying to make amends because they really did irritate Segio Marchionne," Faria says.
He doesn't think the government's contribution helps secure much at all because Fiat-Chrysler has already retooled and invested $2.6-billion at Windsor Assembly.
"That [Chrysler] investment certainly ensures a pretty long future for the Windsor Assembly Plant," Faria says.
"The level of support is still much less than it should be ... but a little bit better to be a little late and a little short than to do nothing at all."
Premier Kathleen Wynne was in Windsor Wednesday for the announcement. The government says Chrysler will be required to provide receipts before they get access to the money.
"I think the government owes a much bigger thank you to Fiat-Chrysler than they've received so far," says Faria.