New auto plant in Detroit is 'great news' for Windsor, experts say

A multi-billion dollar investment into the auto industry in Michigan has Windsoritesoptimistic about the benefits for this side of the border.

Fiat Chrysler Automobiles N.V. said on Tuesday it will invest $4.5 billion to build a new assembly plant in Detroit and expand production in five other Michigan plants, which would create 6,500 jobs in the state.

It's the firstnew assembly plant to be built in Detroit in nearly three decades, according to FCA.

Bill Anderson, the director of the Cross-Border Institute at the University of Windsor, said it's"great news."

Positives for Windsor

He said it's a great sign that FCA decided to stay in the Great Lakes area instead of moving production southward to states like Kentucky and Tennessee which he explained has been a trend.

"A big industry, on both sides of the border here, is making the equipment, making the moulds, all of the things that go into those production facilities," he said.

"I would think that a significant amount of that would come from here in Windsor.I would hope so."

Stephen MacKenzie, the CEO of the WindsorEssex Economic Development Corporation, said the new plant'sproximity to Windsor has its advantages, especially for manufacturers in the area.

"So there's a rule of thumb in the supply chain business about a 90-km, 50-mile radius,if you're working in that supply chain with OEMs [original equipment manufacturer], then you're in the range."

Tariffs are still a concern

However, MacKenzie said tariffs are still a concern.

"The announcement is good, but a resolution of the USMCA and removal of the tariffs would certainly go a long way to making ensure that both sides of the border benefit from this agreement.," he said.

"It's great news, it makes it even more important that the treaty be ratified, that the current tariffs on both sides on steel and aluminum are removed so that the companies and the workers that are supposed to benefit from this actually do."

President of Laval International Jonathon Azzopardi echoed those concerns around tariffs.

"There's lots of positive things happening in the automotive industry. If we don't deal with these obstacles that are between us and being able to take advantage of those opportunities, it puts us at a disadvantage," he said.