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Old 09-06-2008, 01:28 PM   #1 (permalink)
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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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Old 09-06-2008, 05:51 PM   #2 (permalink)
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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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Old 09-06-2008, 10:27 PM   #3 (permalink)
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Re: Government strikes deal with GM for Ontario investment

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GM will also commit $40 million for environmental research at its Canadian engineering center, also in Oshawa.
Oh sure, there's plenty of extra money laying around for this! 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?!!
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Old 09-07-2008, 12:49 AM   #4 (permalink)
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Re: Government strikes deal with GM for Ontario investment

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Oh sure, there's plenty of extra money laying around for this! 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?!!
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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Old 09-07-2008, 08:05 AM   #5 (permalink)
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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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Old 09-07-2008, 08:25 AM   #6 (permalink)
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Re: Government strikes deal with GM for Ontario investment

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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.
Buzz is gone
http://www.thestar.com/News/Canada/article/492082
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Old 09-07-2008, 11:04 AM   #7 (permalink)
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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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Old 09-07-2008, 11:05 AM   #8 (permalink)
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Re: Government strikes deal with GM for Ontario investment

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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.
Anyone wanna speculate??
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Old 09-07-2008, 11:43 AM   #9 (permalink)
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Re: Government strikes deal with GM for Ontario investment

We are getting more then a midsized hybrid
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Old 09-07-2008, 05:27 PM   #10 (permalink)
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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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Old 09-07-2008, 05:42 PM   #11 (permalink)
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Smile Re: Government strikes deal with GM for Ontario investment

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Originally Posted by zete View Post
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!
Actually that would be 20 cents on the dollar...hopefully this will work out well for both GM and Canadians!
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Old 09-07-2008, 07:50 PM   #12 (permalink)
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Re: Government strikes deal with GM for Ontario investment

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Actually that would be 20 cents on the dollar...hopefully this will work out well for both GM and Canadians!
I dislike this "repayable loan" BS I'd be happy, ish, if it leads to more Conserveratives though
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Old 09-08-2008, 10:07 AM   #13 (permalink)
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Re: Government strikes deal with GM for Ontario investment

Election imminent. The candy store is open. Time to buy our votes with our own money.
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Old 09-08-2008, 10:54 AM   #14 (permalink)
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Re: Government strikes deal with GM for Ontario investment

Look at this thread here...

http://www.gminsidenews.com/forums/f...da-deal-68911/
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