Chrysler warns of Canada pull-out

OTTAWA, March 12 (UPI) -- The chief of Chrysler Canada told a parliamentary committee the company will kill 9,000 jobs unless it receives $2.3 billion in government loans.

The threat was made Wednesday night in Ottawa by Chrysler President Thomas LaSorda, the Globe and Mail reported.

Apart from the government loans, LaSorda also demanded the Canadian Auto Workers union agree to 25 percent pay cuts and Canada's tax agency lift a $500 million lien on an Ontario manufacturing plant. That dispute centers on Canada Revenue Agency claims that Chrysler Canada paid $1 billion in taxes to the U.S. Internal Revenue Service that should have been paid to Canada.

"Chrysler LLC cannot afford to manufacture products in a jurisdiction that is uncompetitive relative to other automotive jurisdictions," LaSorda told the committee.

After the meeting, union chief Ken Lewenza blasted LaSorda.

"He's obviously blackmailing the Canadian government for Canadian jobs and he's obviously blackmailing the Canadian Auto Workers," Lewenza told reporters.

Last month, for the first time, Chrysler Canada posted higher auto sales than any other automaker in the country, the report said.