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Chrysler Group LLC chief executive Sergio Marchionne said that higher manufacturing costs in Canada will be a factor in upcoming talks with the Canadian Auto Workers union.
The CAW enters talks with Chrysler, General Motors Co (GM-N) and Ford Motor Co (F-N) in August. Ford and GM have already made comments that Canada's auto manufacturing costs are the highest for their plants.
Fiat is the majority owner of Chrysler, which is based in suburban Detroit.
The CAW contends that the high manufacturing costs are largely due to the strong Canadian dollar. The union wants its workers to share in the relative prosperity of the three Detroit automakers after agreeing to freezes on pay and benefits in the past few years.