HA HA!

WHAT!!!!!!!! that actually sucks for all those employed there in the auto industry. That is really bad news for all those families up there, i hope all ends up well.

You’d have to be loonie to build a car in Canada.

I would also expect 10’s of thousands of manufacturing jobs to come south to America and east to China. Canada now will see what kind of real impact the price of oil being so high, and they becoming an oil economy, USA will see many gains in manufacturing and stable jobs. No country in the world has ever had a stable economy that is balenced across the population from an oil economy. Canada is doomed if they loose their manufacturing base. Right now inflation in Canada is horrible. Even after rebates, a Honda Pilot for example is 10k more in Canada than USA bought units and this vehicle is built in Canada!!

That little blip where our dollar hit a $1.10 US was nothing more than that- a blip. It’s already down to just below par again. But currency fluctuations, while part of the equation, are not by any means wholly responsible for the rise in costs.

The CAW, and especially their head cheerleader Buzz Hargrove, are in for a very real version of ‘Deal or no Deal’ come this summer. But the sooner Buzz and his entourage realize that the quality of the product coming out of Canada and that of Mexico is also pretty much ‘on par’, let’s hope they have the common sense to back off the hard line.

I know this isn’t likely to happen, if fact I liken union votes to elections in Pakistan, but if they let the membership speak this summer without all the pressure tactics they can save a lot of jobs down the road. This is big stuff for Ontario and Quebec and, if they were really smart, they’d elect a new CAW leader before it all starts. Not that we don’t all love Buzz up here, but much like the Crown Vic maybe his time has come.

I never knew that Canada built so many cars! Ontario more than Michigan is surprising. However I have read in a few automotive and financial journals that cars built in Canada are built to a higher standard, and fit and finish is higher quality. All of the domestic automakers choose Canadian plants as the location to build cars that are the big money makers for the companies. All of Chryslers best and coolest models are built up north, even the new challenger will be built there. All of GM’s most important cars and trucks are built up north, I think even the new Malibu is built in Canada. Even the new Camaro (another important car for GM) will be built in Canada And Ford chose Canada to build the new Edge which is supposed to also be a very important car that will decide fords future. If building cars in Canada is expensive its still worth it because theres a reason why the big 3 build that many cars up there. Its not to be friendly with the Canadians, its because they produce quality. Plus they got better beer than us!

healthcare is not free here.

I’m not sure if anyone checked facts, I assume not. I would be shocked if companies did not bear cost for extended healthcare as well as a portion of employees standard healthcare premiums..

lol..

another thing I failed to mention is that many of the parts and chasis, and truck frames are built in Ontario by Canadian owned companies so its a huge savings by shipping all those components to the plants which are usuall no more than an hour away by truck. So production is much more efficient which saves costs. If the big 3 want to survive in this brutal industry, they need to look at this from a long term perspective rather than focusing on current expenses. Pulling out of Canada will be devestating for the big 3 in the long run.

moto-racer13: excellent posts. By the way, I’ve spent a lot of time in border lineups just so I could smuggle back a couple dozen Michelobs!

It was cheaper thats why they built cars in Canada, it has nothing to do w/QC. Same reason jobs will leave, welcome to the new world economy. you better be able to adapt and fast. The unions will get squezzed and people will lose their jobs and as long as US dollar weakens there is nothing anyone in Canada can do about it.

Get a clue, people.

Manufacturing, in general, is an ever-shrinking component of the Canadian labour force … it will not be the end if Canada loses these jobs. In fact, these jobs should go elsewhere … absolutely NO reason to be paying assembly line workers $25-30+/hour.

Sending these jobs back to Michigan is a short-term solution as the US dollar will continue to fall making it cost effective … that should only last until about ‘12 when the dollar hopefully bottoms after the moronic government institutes some sort of gold standard to provide for some semblance of accountability.

The corollary is the Canadian dollar should continue its upward long-term trend until at least ‘12 where the lowest of predictions is 1.25 to the US dollar and some wild predictions of 1.7 … this not a ‘blip’ or blow-off phase, only a short-term overextended run which will be surpassed in time.

Inflation in Canada is no higher than in any other industrialized country … to attribute high inflation to high Honda prices is missing the point … the price has not changed in years, only the rise of the Loonie has not provided purchasing power, YET. Inflation everywhere is low-balled by all governments to hide the truth from its people. Here’s a tip, look at your ‘official’ governemnt rate of inflation and question why they look at CPI but exclude food and fuel as they are volatile inputs … hmmmm, at what point do they become valid? All governments are printing money like it’s growing on trees … wonder why gold is over $800?

Building cars, quality or not, is not a viable, smart business case in this economic environment in Canada. And it wil only get worse, trust me. And the Canadian taxpayer should not be funding handouts to help, like Bombardier. Unless, of course, these jobs garner their true value with respect to wages … somewhere around $15/hour. Otherwise, send them off to the Mexicos of the world.

Yeah – gotta love inflation stats ….

……”after we strip out the **** that makes it high, it’s only 3%”

Fekkin politicians.

nice post impulsive.

who’d want a car made by fat truckers???

Gary: You are a loser.

Madcap: good subtle humor.

moto-racer13: everybody has better beer than us! I might drink a Rolling Rock, but beyond that, you’re into piss-water. Give me a Dos Equis or a Heineken any day.

johnnycanuck: Michelob Ultra is ALMOST palatable

Impulsive: You’ve been reading too much WorldNet Daily.
“Absolutely NO reason to be paying assembly line workers $25-30+/hour.”

Spoken like a jealous man.

Any economist you talk to will tell you the folly of ignoring “volatile” prices. Fewer people are falling for the “official” statistics on that than you think.

“All governments are printing money like it’s growing on trees.” Be careful how you use the word “all.” The U.S. government doesn’t print money.

“And the Canadian taxpayer should not be funding handouts to help, like Bombardier.”

I certainly agree with that. No handouts for any company. I support farm subsidies under very strict parameters, but that’s it.

‘RH’, true inflation stats would only make governments accountable … can’t have that.

‘CTS’, thanks … and a tip for you … if you have ANY fixed income investments (2%-6%), get out … buy gold now and don’t touch it until it hits AT LEAST $2000 … conservatively, 60% return over the next four years. Trust me, I wouldn’t steer you wrong. I only post FACT.

‘jjt’, NEVER have read that literature, yet. Claiming I’m jealous only goes to show how ignorant you are … I worked two summers as a student at the Ford assembly plant years ago, making crazy money … it’s not jealousy, it’s REALITY. Jobs like those should not be paying that kind of money. If I was jealous, I would have stayed and said “**** SCHOOL” … I didn’t stay. As for printing money, please do your homework and find out what the M3 (had it continued to be published) is for the US, and then look for what Canada, Britain, Euro zone, etc. have ‘printed’ (figuratively speaking) lately, let alone in the last couple of months in trying to bail out mortgage related derivative bombs … the use of “all” only pertains to the governments of true ill-repute.

Shumpy, our Health Care is free, however we have to pay for our medicine

Impulsive: I’m not even going to get into most of what you wrote, but the mortgage bailout is a hellaciously bad idea, just like the bankruptcy “reform” law of a coulple of years ago.

Believing gov inflation stats is like believing a chick who says …
… “when you strip away the 400 guys I ****ed over the last two years, I’m a very moral woman.”

Not surprising. Ask any Canadians who live by the US border and they will tell you that town like Windsor is suffering. American aren’t crossing the border to spend money anymore. Now that CDN is worth more than USD, this is not surprising. However, Canada has something called the oil sand and only 1/10 of the US population to support. They’ll do just fine.

I’ve heard that Colorado and all the Rockies have a load of oil sands waiting to be extracted. I think Canadian companies are leading the development of extraction techniques, but once that gets going pretty much all of north america will be okay.

The crappy thing is when oil was $45/barrel they said oil sands wouldn’t be feasible unless oil hit $60 to 70. What the excuse is now I’ll never know.

‘jjt’, there’s nothing to get into regarding what I wrote … it’s all there in black & white. Mortgage bailout is wrong but what they’re doing is no different than keeping interest rates at absurdly low rates … it’s just as wrong. Hence, the devaluing of fiat currency from every country … only, what you’re seeing is the relative values competing when they are mostly all worthless. Buy the Chinese renminbi (yuan) and you’ll be laughing when they depeg fully.

Anyway, get these manufacturers out of Canada NOW!

Impulsive: If I knew when the Yuan would be freed ….

In Nazi Germany gasoline was made out of coal, which US has unlimited supplies. The problem is that making gasoline out of coal and out of oil sand is hugely expensive.I don’t know which process is more expensive, but even at $150 a barrel of oil it is cheaper to get it out of oil. Neither country will be producing fossil fuel out of sand or coal anytime soon.
Canada is making most of cars/truck big 3 put labels on, so all patriots rejoice with closing of Canadian plants, work will go to Mexico (peso was, is and will be **** indefinitely).
Since Fors closing factories, I am sure one of Jap companies will open: they have problem thanks to Ford called capacity.
As much as I dislike government involvement in economy, I think Bernanke is doing fine job and knows what he is doing.

‘autonut’, what about Toyota’s plant and Honda’s plant? It’s not only the domestics here.

As for Bernanke, please understand he’s only a puppet for the administration, nothing more. And he was the one several years ago that spoke about printing money to save the economy … aptly titled the Bernanke electronic printing press.

Americans, take our manufacturing plants, and buy gold. Thank me within four years.

In the end if all you got is oil and economists like yourself, Impulsive, countries that manufacture things and grow food to eat will own your country. You need the manufacturing base for the turn that it creates in your economy. Pay the employees and they spend at home…turning the money. Right now every SMART Canadian that is buying a new car/truck is trying to buy it down here…yes here for alot less. I appreciate your money when you Canadians don’t negotiate and buy a car because it is $5000 or more LESS here in the USA. Its like easy pickings. With this theory of traveling South to buy everything, we should have all of your “gold” soon.

“OH CANADA… IT COSTS MORE TO PRO-DUCE THERE!” Sorry I thought it was catchy….

‘jdasch’, “turning” the money only takes from the weak and puts it in the hands of the strong … remove that unnecessary step … why do you think the authoritarian free enterprise wishes to remove the middle class? Unnecessary waste.

I’ll be buying from you soon. Why negotiate when I can make your day by giving you what your own compatriots won’t do for you … since your country is taking a tumble you NEED us to buy from you or you’d be on the street begging.

I’m a long , long way from begging, but you Canadians don’t negotiate much these days since its so cheap to steal a deal down here. On the other hand, the dealers up your way are hurting greatly from the “smart” canadians coming down south and spending their money “wisely”….Good luck with your theory on the economy.

It’s not the dealers’ fault, it’s the manufacturers who won’t adjust pricing and the dealers suffer. With all due respect, I don’t need a dealer as a middleman taking a cut … just unnecessary filler in the grand scheme of things, but isn’t that the case with most of the economy? It’s all about getting people employed, no matter the position.

What brand you got?