Ottawa gives Ford plant a boostAnd all the (visible) auto workers stood around in shot, with yellow construction helmets on, clapping at the wonderful news.
STEVEN CHASE
Globe and Mail Update
September 3, 2008 at 2:22 PM EDT
WINDSOR, ONT. — Prime Minister Stephen Harper announced Wednesday that Ottawa will give Ford Motor Co. of Canada up to $80-million in assistance to help it produce more fuel-efficient engines at a once-mothballed Windsor plant.
The pre-election aid is the first direct cash the Conservatives have given to auto makers since taking power and is a bid to quell charges they have done little to salve the pain being felt by Ontario's battered manufacturing sector.
Meanwhile, some figures about what's happening in the auto sector, from economics blog Calculated Risk:
In summary:Just the time, it appears, to dump a whole pile of money into the Canadian manufacturing and sales arm of Ford, owned by the US Ford company.
Honda - down 7.3%
Toyota - down 9.4%
GM - down 20%
Ford - down 27%
Chrysler - down 34%
I hate to be a party pooper, but doesn't this look rather like support for the buggy whip industry? Does the Windsor Ford plant plan to be making streetcars, buses and high speed trains? Nah, it's not that bad, but with the market down so steeply, who's going to buy the Windsor cars? Canadians? Well, maybe.
And what's in it for Ford? I can see that possibly Ford might reopen the plant in response to a big slug of money, but in the USA and Mexico, Ford plants are also having an awful time of it, and do you think they will let a mere $80,000,000 displace a stateside plant?
Suppose Harper's chocolate eggs turn out to be real and not imaginary, (remember, this is the man who just named an icebreaker "CCGS John G. Diefenbaker" -- a ship for which there is still no contract, and which can't be finished until 2017.) But just say he is really serious about the $80 million.
I really want to see what will prevent Ford from pulling an NHL --taking the money and then saying, a year or so down the timeline, that alas the auto sector can't support the Windsor plant, goodbye and thanks for all the fish.
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