Although Canada has been the recipient of some bad news lately when it comes to the auto industry, our neighbors to the north have had a little bit of goodwill sent their way over the past couple of weeks. Ontario guaranteed Ford $75 million to keep 750 jobs and Windsor, and it looks as if a few General Motors employees will be safe, too.
GM may be shuttering the doors of its Oshawa truck plant, but the General has committed at least $285 million to its operations in Ontario. $245 million of that will be going to the company’s St. Catharines plant – which produces six-speed transmissions for front-wheel drive applications – securing at least 300 new jobs.
The other $40 million will be invested in General Motors’ Canadian engineering center, according to Trading Markets, which will help the development of green tech. In addition to the $40 million investment, GM has also guaranteed its Oshawa car plant the production of a mid-size hybrid vehicle, although it remains unclear which model is earmarked for production at Oshawa or when production will begin.
Although GM won’t be receiving any direct funds from the Canadian government like Ford, in return for its investments, the government won’t be forcing GM to pay early repayment of a $200 million loan from 2005. That loan was subject to early repayment as a result of a minimum employment requirement which GM could not fulfill with the closure of its Oshawa truck plant.
09/10, 11:53 AM
posted by:
swamp donkey
The government needs to stop funding these companies. If the company can’t get it’s **** together and build a good reliable vehicle that a customer wants, then they should not be in business.
09/10, 12:47 PM
posted by:
inspire
^ It’ll be difficult to wean car companies from the government teat. So many municipalities will give tax breaks / incentives and even hand-outs to secure a plant in their district. Take back those ‘benefits’ and watch the jobs go as fast as the money dries up. And with the state of the global economy right now, who’s gonna play chicken with companies in financial crisis? Too much at stake right now … especially during an election year!!!
09/10, 1:14 PM
posted by:
johnnycanuck
I always get that warm and fuzzy feeling everytime I read about government and big business cooperating. Truth be told however, I’d rather see tax dollars used in this manner as opposed to going to support some waste of skin too lazy to work, or some self-righteous special interest group. I might actually buy one of those Chevys some day.
09/10, 3:14 PM
posted by:
yarddog82abn
Did you know it’s legal to smoke weed in Canada…..
09/10, 4:18 PM
posted by:
frost
um Actually that 75 Million to Ford was and is just an election b/s jab to get votes for the PC party. I can almost guarentee it will never pass the commons floors.
09/10, 4:19 PM
posted by:
frost
“yarddog82abn
Did you know it’s legal to smoke weed in Canada…..”
no it’s not, it’s only legal in some provinces for medical uses only.
09/10, 4:30 PM
posted by:
yarddog82abn
Just like in California, do the cops know that, because here they don’t.
09/11, 8:18 AM
posted by:
DeansterTJ
Frost, no it’s actually legal.
In Montreal you’re allowed possession of 1-2 grams on you. Any more and they reserve the right to charge you with intent to traffic, although they won’t (unless you’re carrying a 2-kilo brick). You’re also not supposed to smoke in public, but people do all the time. Anyways, no one cares. Weed is passe.