Friday, February 14, 2014

Corporate welfare or just the new reality?

Chrysler Investment
If Canada wants Chrysler to invest $3.6 billion they need $720 Million from taxpayers

An article in the Financial Post puts a very sharp focus on the new reality of the Global market and what happens when governments and labour keep increasing the cost of doing business. Like it or not, right or wrong it is the harsh reality of the world we now live in.

The CEO of Chrysler very clearly said that if Canada wants the jobs in the auto sector they have to be willing to kick in tax dollars, and if we don't there are many other countries who want the jobs. Like it or not.

A few of the realities this article highlights:
  • Canada has seen nine assembly plants close since 1965, and a tenth when Oshawa closes in 2016, tens of thousands of jobs have been lost along the way
  • Canada has only won 5% of the $42 billion automakers have invested in North America in the last 5 years
  • Of the $2.9 billion Chrysler got from Canadian taxpayers, $810 million will never be repaid, because that is owed by the 'old' Chrysler
  • The Chrysler CEO said there is something structural that makes Canada less appealing than other places to do business,
  • He also noted that 'the world was getting incredibly competitive'.


allvoices

2 comments:

  1. I know this is a fantasy, but maybe Canada should assert her independence and sovereignty by opting out of the crazy New World Order ruled by corporations.
    We have the huge land mass and small population to be self-sufficient. One can wish...

    ReplyDelete
  2. Auto subsidies to US manufacturers by the Canadian pubic is happening with no help from the government.
    It will be interesting to see what happens with our new budget having a provision for dealing with US companies charging more in Canada.

    According to the GM web sites.
    Seems GM charges $54,515 US for a loaded Camaro.
    The same car in Canada retails at $72,470 Canadian and is not as well equipped. It is also interesting to note all Camaros are built in Oshawa, Canada.
    I wonder what the difference is with the other manufacturers?

    ReplyDelete

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