Chrysler LLC can't afford the same labor agreement General Motors Corp. (GM) signed with the Canadian Auto Workers union and if the deal can't be sweetened, it would be more cost effective for Chrysler to pull out of Canada, Reuters reported, citing a source with direct knowledge of the situation.

Chrysler said it needs to cut C$20 an hour from a total C$76 an hour in labor costs if it wants to stay viable in Canada, the report said. Estimates are that the CAW-GM deal offers slightly over C$7 an hour in savings, Reuters reported Friday.

Full story at: http://www.reuters.com/article/GCA-autos/idUSTRE52D06N20090314