Canada to invest $254 million in auto industry to spur jobs

[ne_one]

Canada to invest $254 million in auto industry to spur jobs
Automotive News
January 4, 2012
by Cameron French

Canada will invest C$250 million ($253.69 million) in the country's auto industry, Prime Minister Stephen Harper said on Friday, as Ottawa tries to encourage private sector investment and create manufacturing jobs.

Harper announced a five-year extension to the Automotive Innovation Fund, which was set up in 2008 to provide government support to research and development projects in Canada's automotive sector.

Separately, Harper said the Canadian government does not intend to keep its stake in General Motors over the long term, but it will not be influenced by the United States on when to sell.

The announcement on the auto investment comes in the wake of General Motors' announcement in December that it will produce the next generation of its Chevrolet Camaro in Lansing, Michigan, instead of at GM's Canadian production hub in Oshawa, Ontario, where it currently produces the sports car.

Canadian Industry Minister Christian Paradis said last month that he was "concerned" about GM's decision to move the Camaro and that Ottawa would hold the Detroit automaker to the commitments it made in return for the Canadian government's investment in the company.

The Canadian government and the province of Ontario, the heartland of Canada's auto industry, pumped more than C$10 billion into GM in 2009 to bail out the struggling automaker.

In return, the Canadian governments required that GM maintain its share of production in Canada for several years moving forward.

Full article at link.

[megeebee]

Is there a Tea Party in Canada?


Socialists!

[richmond2000]

Is there a Tea Party in Canada?


Socialists!

NO

the "bail out" was hardly news worthy and ChryCo moving the CaraVan to mexican production if Canada did NOT participate made more news then the actual "bail out"

[tombalas]

Is there a Tea Party in Canada?


Socialists!

Dey terken er jerbs!

[Sox]

Gee Canada! Thanks for the $10.7 Billion! Sorry about that truck plant we closed 18 minutes after we negotiated that contract 4 years ago. Sorry about the Camaro too. We would also thank Mexico but they gave us nothing. Absolutely nothing. Suckers! - GM

[MechEng]

This isn't a new fund. The Federal Government is just adding additional funds and extending the existing program to encourage automotive tech jobs.

Is there a Tea Party in Canada?

Socialists!

Sort of. It's interesting because the party in power right now is the Conservative party. They represent the right wing of the political spectrum. They have a few members that would make the tea party proud.

[Relik86]

I dunno if I should mention the currently-expanding Lexus plant in Cambridge, and last year's Honda CR-V production being moved to Alliston or not... Let me get back to you on this.

[Tone]

This fund is less about manufacturing jobs and more about attracting high-value R&D activities to Canada. Given we have no automakers head officed in Canada, the risk is that we'll only attract assembly work and miss out on the higher parts of the value chain (research, design, etc.). Having such activities up here tends to not only impact manufacturers, but also the suppliers that are doing larger amounts of design and engineering work themselves.

It's not a huge fund and not out of line to a a huge range of incentive programs in other jurisdictions (including state-level initiatives).

[bangstudios]

Gee Canada! Thanks for the $10.7 Billion! Sorry about that truck plant we closed 18 minutes after we negotiated that contract 4 years ago. Sorry about the Camaro too. We would also thank Mexico but they gave us nothing. Absolutely nothing. Suckers! - GM

Not a problem, GM, enjoy third place in the sales race -- soon to be fourth.

(BTW, I do happen to believe that the public's perception of the plant closing & repurposing is responsible in no small amount for GM's significant market share drop).

[jpd80]

Canada has to do something, there's a big push to return production and jobs to the USA, I know that Ford, GM and Chrysler have all made undertakings under recent CAW agreements but you can bet that all companies will be watching production costs like a hawk and anytime a government can be seen as assisting an industry to continue, well that has to be a benefit to everyone's future prospects...Ahem..

[CharlotteFirebird]

It's always seemed like the cars that have two plants producing them should be the ones in Canada (with the other in the US)...such as the Impala, the Equinox, etc. That way, Americans can buy the American-made cars and the Canadiens can buy the ones made in Canada. Cars with only one plant should be in the US only.

Oh, and stop anything from Mexico being sold in the US or Canada. Just a few thoughts...

[doh]

This Cranks me up!

Sorry but Ontario and Canada is willing to invest into the Auto Industry, time and time again. Because they are important to Southern Ontario.

Still Ontario and Canada does nothing for the Forest Industry, and Canada does little for the Oil Sands.

I live in a Paper Town, The Mill owned by a Quebec Company that just idled 1 of it's 2 running Paper machines, and it's Kraft Mill, that can fill it's orders, but 60% is going to a US Company.

I can walk out of my door and cut a Cord of wood without anyone noticing. Still our Mill is Idled, because of "Soft Market" But a US Mill wants to purchase "Our Mill The 3 paper machines and all" for the Kraft and Wood Rights. But it is not "Up Forsale to 1 Competition, or 2 American Company."

Did you hear that Harper? America pays Us for it, and employees 239 people directly, and 300+ indirectly? In a town of 8000, that means alot.

I have voted Blue since I was 18. Red shows us how to handle Ontario, and well Orange is basically throwing a vote away. We need another Reform Party! And we need it now!

If "The Company" isn't Comfortable about selling thier Mill to thier Competition (That has made an offer for it). Then make them kill their Mill completely, and clean up the mess they left behind. Leaving it to the Nova Scotian Tax Payers. Well Abitibi/Resolute was under Bankruptcy protetion then.

Resolute Forest Products is a "Scavenger Company" Still owning the wood rights, for a Mill that isn't operateing anymore. It has stripped Nova Scotia, of all it's valueable resources, while leaving behind it's waste. Not having to clean up more than $100 million in toxic clean up.

Where did they get the "Wood Rights?" From the Goverment. Who should decide, where the rights go?

The People of Canada, and who is in control of that? Thier Goverment. Hear that "John Rafferty?"

Shut them down, make them make my river front beautiful again, It is what "American Tourist see first" Clean thier Logon, and Chip pile, oh and make them pay the Tax Dollars pledged for the Hog Fueled Co Gen, that they built here. Which is running on Natural Gas, because they cannot make it run on Hog Fuel, for a profit, and are still paying it off.

I know Orange can't do anything for us, and our District still votes that way, Red is almost the last Orange, but is still in charge in Ontario. But is leaving us astray. And Blue (My fromer choice) Leaves us stranded,

With a simply Pen Stroke, Resolute would have to clean up thier mess, or Sell, or start to run again. The wood right maybe going to an American Company, but Canadian workers are getting payed to cut it. and haul it.

[jpd80]

It's always seemed like the cars that have two plants producing them should be the ones in Canada (with the other in the US)...such as the Impala, the Equinox, etc. That way, Americans can buy the American-made cars and the Canadiens can buy the ones made in Canada. Cars with only one plant should be in the US only.

Oh, and stop anything from Mexico being sold in the US or Canada. Just a few thoughts...

Just to set the record straight, Ford sold 214,222 vehicles in the USA last month

So how much product came from Mexico?

Fiesta - 5,612
Fusion - 1,630
MKZ - 19,283

Total = 26,525 or 12.3%

That small amount will be further reduced as more Fusion
and MKZ begin coming from Flat Rock later this year.

[CharlotteFirebird]

Just to set the record straight, Ford sold 214,222 vehicles in the USA last month

So how much product came from Mexico?

Fiesta - 5,612
Fusion - 1,630
MKZ - 19,283

Total = 26,525 or 12.3%

That small amount will be further reduced as more Fusion
and MKZ begin coming from Flat Rock later this year.

That's not bad. I agree. I just think it would look better if there were fewer nameplates made elsewhere, even if the total sales are the same. Also, I think Ford makes too much in Canada, so that's another issue.