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Sunday, December 21, 2008

Prime Minister Harper and Ontario Premier McGuinty announce $4 billion in financial support for the auto industry

Prime Minister Stephen Harper and Ontario Premier Dalton McGuinty announced Saturday that Canadian automakers will $4 billion in loans.

The money will go to General Motors and Chrysler through Export Development Canada (EDC).

“This is a regrettable but necessary step to protect the Canadian economy,” said Prime Minister Harper. “Canadian taxpayers now expect their money will be used to restructure and renew the automotive industry in this country and ensure that Canada maintains our current production share of the North American market.”

“Here in Ontario, we’ve got thousands of people, and their families, who rely on the auto industry to be on firm ground, so they can put food on the table and keep a roof over their heads. What the Prime Minister and I are saying is that those people and their jobs are worth fighting for," said Premier McGuinty.

The automotive industry in Canada directly represents 14 percent of the country’s manufacturing output, 23 percent of manufactured exports, and directly employs over 150,000 Canadians. It is the country’s largest industry within the manufacturing sector.

Posted by Matthew Johnston

Posted by westernstandard on December 21, 2008 in Economic freedom | Permalink

Comments

Okay, now how do they plan to convince a couple of million people to buy a new vehicle in this economic climate? Will there be some incentives for the consumer?

I have a sneaking suspicion that some older cars are going to be legislated off the road. There are several ways to do this. My '69 Chevelle won't pass any sort of emission test, so it goes to the crusher(ouch). My '67 Cutlass doesn't have shoulder restraints, so it's an ugly lawn ornament. These are extremes, the real push will be against 10 year old cars that have faulty emission control systems or have been modified. Any older diesel vehicles are done for. Trade-in values will be washed away by recycling fees.

There might be some relief from south of the borber. The Barrett-Jackson crowd won't take this sitting down, and they're an influencial group. Maybe some of the real classics will be saved from the crusher, but uncertainty will take a big bite out of the price of antique cars. Might be a good time to grab a Mach 1, or a '70 Cuda. If you find something cheap enough, the insurance on these cars is about $120 a year(if your over 25).

Posted by: dp | 2008-12-21 11:46:59 AM


Were there any strings attached to curb Union excesses the way the White House Bailout is structured ?
Scroll down for some interesting insights:
http://mjperry.blogspot.com/
or:
http://gregmankiw.blogspot.com/
PS: Do we have the money ?

Posted by: joe blowe | 2008-12-21 12:44:54 PM


So now we have it. The PM has caved in to the pressure and screaming from the Left. Will he and the premier explain to the workers of Honda and Toyota in the same province why they were penalised for their success? Of course not, so now all of us are stuck with the bill for this disgraceful corporate and union welfare.

Posted by: Alain | 2008-12-21 12:56:17 PM


That's it, Ontario. Not one more penny. Next time you people starve.

Posted by: Zebulon Pike | 2008-12-21 1:02:17 PM


Bail Outs are also "buy ins". Our government has no busines getting involved in failed business on any level. Maybe its time to legislate the government out of government by popular decree...
These slime bags are going to ruin all of us yet.

Posted by: JC | 2008-12-21 2:03:06 PM


Even Ontarians hate the idea of a possible bailout.

Before a nickel of my money goes into this, the CAW has to give.

They're claiming they're not going to budge and inch on salaries, which is fine with me.

As long as they give up the cushy deal at time of retirement, it may be palatable.

Give up the $100,000 cash and $35,000 voucher for a new car, then the taxpayers may be willing to talk turkey.

All W. promised in the US was orderly bankruptcy.

That means he's giving GM and Chrysler enough cash to start Chapter 11 proceedings.

Before giving out a nickel of my money, Harper would be well-advised to be patient and see what Obama is going to do.

My guess is Obama will allow the UAW to keep their ‘job banks' concept, in which case the US dollar will continue to plunge.

Posted by: set you free | 2008-12-21 2:49:09 PM


I am quite sure interest made on these loans will go back to the taxpayer {ha-ha}, that's even if these loans are paid back. It's still up to the consumers what cars they buy. If you don't support this deal by foreign cars.

Posted by: glen | 2008-12-21 3:35:40 PM


Here is Dan Mitchell from the CATO Institue talking about this fiasco. This is well worth a few minutes of your time. And pass it on!!
http://www.youtube.com/user/afq2007

Posted by: TM | 2008-12-21 3:38:17 PM


Sorry, that should have read "buy foreign cars".

Posted by: glen | 2008-12-21 3:38:53 PM


glen, like many you refer to foreign cars. Frankly they are all foreign cars unless we call all vehicles assembled in Canada domestic, in which case we must include Honda and Toyota along with the American vehicles.

Posted by: Alain | 2008-12-21 5:12:13 PM


Frankly they are all foreign cars unless we call all vehicles assembled in Canada domestic, in which case we must include Honda and Toyota along with the American vehicles.
Posted by: Alain | 2008-12-21 5:12:13 PM

Let's say that Honda designed a car in Canada. The parts were all made in Canada, but it was assembled in the US. Would you consider it a foreign car?

Posted by: The Stig | 2008-12-21 6:23:10 PM


Acura?

Posted by: set you free | 2008-12-21 8:44:35 PM


Since we no longer have the Auto Pact, we might be better off trying to bring more Japanese owned plants to Canada. What the hell? They're kicking the big three's asses anyway. We might as well go for the maximum number of manufacturing jobs.

It's becoming clear to me that the whole concept of national identity is long gone. There isn't much left for old guys like me. I'll never adjust to this new mosaic, so I might as well finish my days talking to squirrels.

Posted by: dp | 2008-12-21 9:38:42 PM


Stig, borders are established by politicians. Compatitive advantage benefits us all, regardless of the borders. People should buy the car they want, regardless of who makes them or where they are made. Whether it is made across the street, across the province, across the country, or across the world, is matters little.

Posted by: TM | 2008-12-21 11:50:17 PM


Oops, comparitive, not compatitive.

Posted by: TM | 2008-12-21 11:50:56 PM


There would be little point in setting up foreign manufacturing plants here if the same unions are going to get the same stranglehold on them. Ineveitably we, the consumers, will get screwed the same way the big 3 have been screwing us.

Posted by: JC | 2008-12-22 6:38:40 AM


...regarding sidelining older cars.

My '94 Bonneville 3.8L still gets decent gas mileage like 28-30 hwy, still is very quiet inside, and rides like a cloud.

AND still can pace a BMW Z4 on highway 22 south of the Lakes.

Won't say at what speed, but enough said it was fun that my old 4 door family sedan can pace a brand new $60K+ car.

Yes it was a cheap thrill...excuse the pun.
;-)

Posted by: tomax7 | 2008-12-22 10:03:45 AM


...oh yeah, also got a '91 Cherokee with 360K on it.

Posted by: tomax7 | 2008-12-22 10:04:12 AM


A post at "Daimnation!:

"Buzz Hargrove (gasp!) gets one important thing right"

Mark
Ottawa

Posted by: Mark Ottawa | 2008-12-22 1:58:23 PM


A post at "Daimnation!:
"Buzz Hargrove (gasp!) gets one important thing right"
Posted by: Mark Ottawa | 2008-12-22 1:58:23 PM

He's right that full-size cars, vans, and cross-overs are made in Canada. Maybe if his members were willing to work for the same wage as Mexicans and Koreans, which is where GM makes most of their small cars, GM would build small card here.


Posted by: The Stig | 2008-12-22 2:43:36 PM


GM would build small cars here.

Posted by: The Stig | 2008-12-22 2:44:47 PM



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