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#1 (permalink) |
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3.8 Liter Supercharged V6
Join Date: Sep 2005
Location: Toronto, ON
Drives: Buick Allure CX 2005
Posts: 580
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Government strikes deal with GM for Ontario investment
http://news.yahoo.com/s/nm/20080906/...autos_gm_col_1
TORONTO (Reuters) - The Canadian government said on Saturday it had struck a deal with General Motors of Canada Ltd that commits the automaker to invest $290 million at several of its Ontario operations. The announcement is the second of its kind in the past three days and may help shore up support for Canada's minority Conservative government in Southern Ontario, where the auto manufacturing sector has been bleeding jobs, on the eve of an election call. Under the agreement, GM will put about $245 million into its St. Catharines plant to make fuel-efficient 6-speed front-wheel drive transmissions, which would support more than 300 jobs, Industry Canada said in a release. In Oshawa, where GM recently announced it was shuttering its truck plant, eliminating 2,600 jobs, Canada's largest auto maker has agreed to build a mid-sized hybrid vehicle at its car plant. GM will also commit $40 million for environmental research at its Canadian engineering center, also in Oshawa. The Canadian government, which is widely expected to call a federal election on Sunday for October 14, is not required to contribute any new funds. Instead, it said it would not trigger early repayment of loans it provided GM under a 2005 agreement, of around $200 million, that hinged on minimum employment targets, which GM will not meet due to the truck plant closure. On Thursday, the government announced it would invest up to $80 million in Ford Canada facilities in Windsor, Ontario. Canada's auto sector has been hit hard by a combination of high gasoline prices, a stronger Canadian dollar and the economic slowdown in the United States, where nine of every 10 Canadian-built cars are sold. |
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#2 (permalink) |
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5.3 Liter LS4 V8
Join Date: Dec 2005
Location: NCR, Great White North
Posts: 3,491
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Re: Government strikes deal with GM for Ontario investment
I believe the Federal Government also forgave GM $200+M in loans, probably those for the original St. Therese F-Body plant.
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#3 (permalink) | |
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5.3 Liter Vortec V8
Join Date: Jan 2003
Location: Pensacola, Florida
Drives: '07 Corvette Z51
Posts: 1,465
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Re: Government strikes deal with GM for Ontario investment
Quote:
What would that have equated to, a MCE to the aging Impala's interior since it's going to be at least 4 more years before there's a new one?!!
__________________
GM better hope the Volt is a runaway success, because all the eggs are in that basket!
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#4 (permalink) |
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5.3 Liter LS4 V8
Join Date: Dec 2005
Location: NCR, Great White North
Posts: 3,491
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Re: Government strikes deal with GM for Ontario investment
If I heard the news correctly, our government forgave GM more than $200M in outstanding loans from prior years. So this is a $40M investment from GM so they can be forgiven $200+M owing to the Canadian people. Seems like a deal if you ask me. Effectively revalues the outstanding loan at about 40 cents on the dollar!
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#5 (permalink) |
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4.4 Liter Supercharged Northstar
Join Date: Jan 2004
Location: Toronto area
Posts: 2,160
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Re: Government strikes deal with GM for Ontario investment
The CAW has been whining for months so I guess they finally got something to shut them up. I'm sure Buzz will say it's still not enough.
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#6 (permalink) | |
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3.8 Liter V6
Join Date: Feb 2004
Location: Cobourg, Ontario
Posts: 392
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Re: Government strikes deal with GM for Ontario investment
Quote:
http://www.thestar.com/News/Canada/article/492082 |
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#7 (permalink) |
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3.8 Liter V6
Join Date: Aug 2007
Location: Windsor, ON, Canada
Drives: 1995 Jimmy 2wd 4door (Envoy-fronted, Caddy-tail'd)
Posts: 433
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Re: Government strikes deal with GM for Ontario investment
^^^OK fine:
I guess Ken Lewenza will still say its not enough. But, Buzz did say the other day, when the FOMOCO money was announced, that it wasnt enough. |
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#10 (permalink) |
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5.3 Liter Vortec V8
Join Date: Mar 2005
Posts: 1,307
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Re: Government strikes deal with GM for Ontario investment
Southern Ontario votes will determine whether the Conservatives win a majority in the House of Commons. I'm not sure the CAW will buy into this.
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1966 Corvair Corsa |
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#11 (permalink) | |
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1.8 Liter ECOTEC
Join Date: Jan 2003
Location: The Conch Republic
Drives: Yamaha Zuma Scooter
Posts: 31
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#12 (permalink) | |
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7.0 Liter LS7 V8
Join Date: Oct 2003
Location: Montréal, Québec
Posts: 8,583
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Re: Government strikes deal with GM for Ontario investment
Quote:
I'd be happy, ish, if it leads to more Conserveratives though
__________________
What will destroy our country and us is not the financial crisis but the fact that liberals think the free market is some kind of sect or cult...That’s not what the free market is. The free market is just a measurement, a device to tell us what people are willing to pay for any given thing at any given moment. The free market is a bathroom scale. You may hate what you see when you step on the scale. ‘Jeeze, 230 pounds!’ But you can’t pass a law making yourself weigh 185. |
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