Filed under: Government/Legal, Plants/Manufacturing, Ford, Canada
Canada giving Ford C$80 million for new facilities
The Canadian government and Ford have agreed on a deal to provide the Blue Oval $80 million worth of incentives over five years towards new and upgraded facilities. The deal specifically applies to Ford's Essex engine plant, which currently produces V8 engines for SUVs and trucks. Upgrades will be made to convert the plant to flexible manufacturing, which will enable Ford to keep the plant open by producing a number of different powerplants on one line. Flexible manufacturing will also help Ford shift production to meet whatever demand dictates, which is something Detroit automakers desperately want but generally don't have and can't afford to create. In return for Canada's hard-earned Loonies, 750 CAW jobs will be saved and or created.
Ford will also build a new center to research engine efficiency and fuel technologies using the Canadian money. The facility will work on hybrids and other alternative powertrains for Ford, which is a green feather in both Canada and Ford's cap. Outspoken CAW boss Buzz Hargrove wasn't in the mood to thank the Canadian government for its generosity, though. He feels the government should have stepped up long before thousands in the region lost their job.
[Source: Reuters]
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Reader Comments (Page 1 of 2)
Willis 3:40PM (9/04/2008)
Hey wow the Canadabuck is under USD again. That's only $75MM Ameribucks, figured it would have been more.
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Rogue_G 3:41PM (9/04/2008)
Step in the right direction, and ultimately necessary to bail out the domestic auto industry.
Also, Buzz, maybe if you hadn't dragged your heals and brought over the euro designs half a decade too late, this bail out wouldn't have been necessary. But hey, why apologize when you can make a resenting comment instead. Stay classy!
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Mike 3:50PM (9/04/2008)
I'm not one to defend UAW or CAW "executives" but Buzz Hargrove doesn't work for Ford, how could he make the choice to bring over Euro vehicles?
mike 4:00PM (9/04/2008)
“Also, Buzz, maybe if you hadn't dragged your heals and brought over the euro designs half a decade too late”--------------WOW, just wow, I never thought I’d live to see a post where the union will be blamed for not having European Cars here.
I know, let’s blame the union for shabby quality, for fires, explosions and for making SUVs that consume more and more in the face of ever increasing gas prices.
The management is blameless.
Mike 3:50PM (9/04/2008)
Whatchu talkin' 'bout Willis?
Sorry, I couldn't resist.
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Mike 3:53PM (9/04/2008)
That was supposed to be a reply to Willis obviously.
steve-o 4:02PM (9/04/2008)
Buzz is an old man, on his way out.
He's still pissed at GM for pulling out of Oshawa, even after the assurances it got that GM would keep it open.
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why not the LS2LS7? 5:04PM (9/04/2008)
If you want to be guaranteed of keeping your job during a downturn, get a government job.
MajorGeek 4:15PM (9/04/2008)
Man, if they kept their plants in Detroit they could have paid an extra 80 million in taxes... oh wait.
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Dave B 4:26PM (9/04/2008)
The only reason Ford is getting this money is because the Conservatives are trying to get an election in October. This move will make a few people in Ontario happy and get them more votes in Ontario. It's all political BS. Ford is putting $600 million into the plant. Screw the Convertaives, they are a copy of the Republicans. We need to get them the hell out and make sure they don't get a majority government!!! Too bad Liberals aren't any better and NDP doesn't have a chance.
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Jon 8:43AM (9/05/2008)
They all suck...Conservatives are the lesser of 3 evils. The Liberals with their carbon tax, the NDP's and the Green party will bankrupt the country.
ChrisL 4:27PM (9/04/2008)
I think that if there is money for business investment, the Canadian government should support growth in new Canadian businesses such as ZENN Electric Cars rather than propping up established non-Canadian businesses like Ford.
No worries though, the present minority (neo-conservative) government will be calling an election this Sunday. This is one of a series of pre-election 'promises' that will be forgotten shortly after the election happens. Ford, don't count on getting this cash, this party has broken almost every 'promise' they made during and prior to the last election.
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TBehr 4:52PM (9/04/2008)
I do not think this is fair to the other OEM's. If this is the way we want to help keep Jobs in Canada then we shoud give $80M to every OEM that builds cars in Canada not just Ford.
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mayflyripper 5:01PM (9/04/2008)
Quelle surprise! With wide speculation of a federal (Canada) election in October, the government signs a deal now with Ford to save 750 jobs instead of earlier in the summer. Note the absence of a similar deal with GM.
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Zakk 5:05PM (9/04/2008)
Wow, real great job Conservatives!
Announce this just before you call an election and now you've successfully bought votes in the Windsor/Essex area.
This is nothing more than securing a seat in the House. If they really cared they'd also help out the "other" struggling automaker in Oshawa.
I'm tired of tax dollars being spent like this.
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Jon 10:48AM (9/05/2008)
They already gave that "certain (read GM)" automaker in Oshawa money. They said thanks and anounced they are closing it. Old news - Google it.
Kitko 5:20PM (9/04/2008)
I hope Toyota and Honda will receive help from Ottawa too, after all, they're not firing people nor they are not closing down their factories. Yet another proof that free market and competion go out of the window anytime it's time to help the failed Big Three.
They had the chance in the 80s, they decided to blow it, another time came in the 90s, they did the same. I'm having a hard time to remember any industry that so miserably failed to innovate, to advertise Camaro with highlighting independent suspension is simply pathetic. The car's Australian anyway.
The Big Three always relied on chauvinistic and pseudopatriotic instincts - "buy domestic". Now? Ford is heavily dependent on small Mazda (chassis, i4 engines) and on its European operations, which depend on Mazda even more (It's not Mazda3 built on "future Focus platform", it's Focus that will get current Mazda3 platform. GM is bringing in German Opels and Korean Daewoos... Excellent.
BTW, Buzz should have pressured US manufacturers to diversify their manufacturing programs in Canada. US plants in Canada were until very recently heavily truck and full-size cars dependent.
Sorry for the tone, but these bailouts are cash in the trash.
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why not the LS2LS7? 7:09PM (9/04/2008)
Sales of large vehicles are down a lot.
Sales of small vehicles are flat or a bit up.
It isn't a domestic thing. It isn't an import thing.
Indiana gave Honda US$41M in incentives to locate a single plant there. Is that a "bailout" and cash in the trash?
johneboy 11:44PM (9/04/2008)
Paying E.I. to laid off workers is 'cash in the trash'. Now is the time for automakers, governments, and unions to figure out how to keep jobs in Canada and the U.S. If it takes some up front investment to keep well paying jobs, it might just be worth it. The taxman giveth to the corporation, then taketh from the worker. Let's do the math... $80 million over 5 years divided by 750 workers = $21333. Your average autoworker pays way more than that in taxes per year. I'm thinking this is the better way to go, as opposed to shutting the plant down and doling out the E.I.
Anurag 8:33AM (9/05/2008)
This big three are losing company. Why would you reward a loosing company? Why not reward companies which are creating more jobs and opening more plants. This is my tax dollar going to a loosing company.
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