Chrysler is reported to be planning to invest $1.2 billion in its Brampton plant as it shifts production of the European version of the 300 sedan to Ontario from Austria.
The Toronto Star reported the production shift in its Wednesday editions.
The news comes a day after Chrysler confirmed it won't build the Imperial luxury sedan, which was slated to be assembled in Brampton.
"The decision to build the Imperial concept was always contingent upon our ability to create a profitable business case for the vehicle," David Elshoff, a spokesman for DaimlerChrysler AG's Chrysler Group, told the Associated Press. "There was no way we could do that."
The Imperial was going to be Chrysler's largest and heaviest luxury vehicle, but it fell victim to rising U.S. fuel economy standards.
The 300 is already produced in Brampton. The plant will undergo retooling so it can accommodate right-hand and left-hand drive versions of the car, along with a diesel version, the Star said, citing unnamed sources.
Canadian Auto Workers president Buzz Hargrove said he has been told by Chrysler that the Brampton plant will get an investment.
"They've told us that the investment is not off for the new generation of the 300 series," Hargrove told the Detroit Free Press.
