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Auto-parts industry seeks $1-billion in loans

From Tuesday's Globe and Mail

Government package 'required immediately' to help sector survive during liquidity crisis – and avoid collapse, manufacturers warn ...Read the full article

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  1. James Hurstle from Victoria, Canada writes: Let them collapse. NO MORE MONEY!
  2. george mcfly from Canada writes: I guess it's time to get a hair cut and get a real job!!!
  3. Michael S from Canada writes: Unbelieveable! More wasted money. Tell the auto industry that they have made their own beds ... now it's time to lie them! They have a product that they can't sell; they need to develop a product they can ... and quit putting out a hand when things don't go as 'they' envisage.
  4. Winston Smith from Canada writes: It would be a sad day to see the Tories, long defenders of free enterprise and small governments, hand over taxpayer's money to auto-parts companies making products the market does not want; not to mention subsidizing millionaire executives like Frank Stronach.
  5. True North from Canada writes: The line-up at Harper's door begins after he bailed out the banks.
  6. Gary Dare from Portland, Oregon, Canada, writes: How about horse whip and buggy manufacturers, while we're at it?!?!?
  7. D Peters from Alberta, Canada writes: So where does the line up end? I may as well get in line too. Having survived the 'softwood' issue, the NEP, I need to pay myself a few more dollars so I can afford to not show up for work.

    Dammit....where is my handout?
  8. Ed Long from Canada writes: Gee .... the auto parts business is the only industry in trouble.

    What a relief.

    A notoriously outdated industry needs help during a recession.

    Hmmmm .... there is a logical answer and it costs nothing but two syllables.
  9. Andre Carrel from Salmo, Canada writes: Free The West Free The West from Free the West, Canada writes: 'And 'TRUE NORTH' it was the US banks that were bailed out, the Canadian version is completely different. Let me guess, you're a Leftie.'

    If not a direct bail-out, the multi-billion dollar mortgage swap done just a little while ago was not exactly a routine transaction either, was it? If it were, why did was it announced by the government? Your information could have been useful and helpful to readers but for the ending snide remark. You just could not leave well enough alone, could you Free The West???
  10. P Martin from St. John's, Canada writes: Another billion? Not to worry...it is little compared to the billions already wasted. I guess it is nice make-work projects if you can get it. I am not saying that it MIGHT not be needed, just that like many other things this government does, it is always a knee-jerk response to something rather than a thought out long-term solution.
  11. D Peters from Alberta, Canada writes: Where is Buzz Hargrave on this one...oh wait...never mind...he has a job...unlike his sheep
  12. Ed Anger from Canada writes: get the money from Buzz ...
  13. J Canucklehead from Canada writes: Let them collapse. Corporate welfare bums.
  14. Roop Misir from Toronto, Canada writes: No more money. Ask Mr. Layton!
  15. D Peters from Alberta, Canada writes: I feel sorry for the banks....I feel sorry for the auto industry....I feel sorry for the aerospace indutry....and all those others that live on the corporate dole....gimme a bunch on newfies anyday
  16. Don Portz from Trochu AB, Canada writes: I can see that assisstance to the Auto Parts mfgers be reasonable provided that the monies would go retooling for the energy efficient vehicles of the future and that it would be based on known contracts . Cerainly just handing them money waiting for areturn to the old ways (which will never come) is not the answer.
    Alternatively (and preferable to me) they need to assess the potential of other manufacturing oportunities outside the auto sector which would justify help. The love affair with the Auto is over after some 80 odd years. Lets move on.
  17. all thedirt from Canada writes: D Peters you forgot the Farmers and oil companies.
  18. I.R. Warner from cowichan bay, Canada writes: let them ROT! no more handouts, bail outs or anything else. it's amazing....when they are making money hand over fist....nobody is offering the tax payer a dividend! quit whining.
  19. jamie yavis from Canada writes: Oh, I guess there will be a 'Fat Cat' charity now!

    For years these guys stood on the laurels of yesterday's inovations, turning once profitable companies into money making cash cows for the top dirty dozen executives who cared more and and bragged more about which CEO was making more that $10M a year, and how their stocks were doing.

    While the actual product, and brand name, became candy floss to get investors parting with their cash!

    Well guess what ... it's time to get to work like the rest of us, to the dirty dozen who helped get the corporations in this mess give them a broom and then perhaps some cash!
  20. I.R. Warner from cowichan bay, Canada writes: next....bombardier will need more money too. the taxpayers have propped them up to the tune of about 5 billion in tax breaks and 'loans' over the past 20 years. free market.....let them rot and send their useless executives to prison....for being greedy and short sighted.
  21. john wardle from Canada writes: Amazing how incompetent the management is for these companies. Toot bad i couldn't be just as dumb on the job and get away with it.
  22. Michael Tripper from Canada writes: a billion dollars you say? Here's an idea, bypass the bs executive nonsense and just give it straight to the workers who would be affected.

    I'd love to see the numbers of jobs versus bailout here - ahh who's kidding who, corporate beggars are first in line before minimum wage increases, welfare or housing for ordinary canadians - it's the Canadian way after all.

    What is good for the Courtiers in Ottawa is best for everyone - see victorian england, it's our model.
  23. Andrei Popov from NYC, United States writes:
    NO WAY !!! no more government money. It is time those overpaid auto workers and excecutives get salary reduction to help their industry to survive...
  24. Misery No one from Toronto, Canada writes: It's the unions stupid. Get rid of the unions and then only then will the auto manufacturers be able to run their business's in a profitable way.

    As far as hand outs well I don't need a hand out I'm OK and can survive cause I'm not interfered with by any dam union.

    Like one autoworker said: Where am i gonna get another job at $70k shuttling cars off the assembly line to the parking lot.
  25. Edrico Alberto from Edmonton, Canada writes: I would say 'No more money' also, but lets face it, the government buys votes with our money, and it takes a strong and principled politician to say the shortest word in the English language; 'NO'. And I must confess, the jury is still out on Stephan. Seems to me he caved on the Quebec arts subsidies - or whatever they were, but then again that was Quebec. So, if our politicians can't take the heat, then at a minimum, negotiate down the wages to, say 60% of what they were getting as a precondition to extra funding. Seems to me Buzz should take a big cut also. Buzz, Buzz, you there???
  26. Harry Chappell from Fort McMurray, Canada writes: 'Liquidity crisis' - this is what we call royally screwing up a business and going broke these days. I can't wait to see the next thief in front of the judge - 'Aw, your honour, it's no big deal. I was just having a liquidity crises.'
  27. M Poland from Canada writes: I'm all for money for R&D. That's it, though. This latest pull on the public teat reminds me of Air Canada in the days after 9/11, when they had to have $4 BILLION immediately or that would be it for them. You cannot imagine how many people in Western Canada were hoping their prognostication would come oh so true ....
  28. Ed Long from Canada writes: M Poland .... you are wrong.

    Air Canada was pushed into a full merger with Canadian, a corporate maneuver never before successful, and then 09/11 hit.

    The first was the damage because the logical strategy to cherry pick the few assets Canadian owned and lay off about 12000 employees, mostly in Western Canada, was politically bad timing going into an election.

    Unbeknownst to Air Canada, Canadian had no assets. Even the goose on the hangar was leveraged, the silver ware on the trays, everything .... and American Airlines was billing them for every transaction from load planning to finance on a per line basis. Pension liabilities and WCB liabilities ... a total gong show. The had nothing and were being bled.

    9/11 exacerbated the initial problem.

    Hitting up government was simply a 'you didn't want to deal with an ugly scene, then pay up'.
  29. D Peters from Alberta, Canada writes: When in business one never knows what will ' exacerbate' a problem, but the very idea of being a manager is to have a bit of a look down the telescope and see what might be coming.

    I said on another blog on this site to what the French president eluded to 'we have to many people, making to much money, for doing nothing'. By doing 'something' I mean to actually produce something. A farmer, generally, produces something. I am using farmer as an example, don't hold me to task on it though But when a group of people make money through simple speculation, doing nothing more than injecting billions into an industry sector and then pull it out 3 days later and making 2% on the 'bump' is grossly irresponsible. The speculators have pushed the true investors out of the market.

    And here we sit
  30. Rain Couver from Canada writes: FU!

    Harper and his merry band of NeoCons need to reserve some of my our in case there is need in an essential service.
  31. Angry West Coast Canuck from Canada writes: 'Loans'? I doubt it. More likely outright donations as these companies will likely go bust anyway. But the shareholders will be happy, and the senior management with their huge payoffs.

    For 1 billion we could have public Canadian projects benefiting Canadians and keeping them employed. Not loans to mostly American companies whose first interest is providing profits shareholders and to hell with the local workers.

    As for getting rid of unions? Go visit Dubai and how they treat their construction workers there. See the slaves in action as they die by the dozens on the construction sites. THAT is a future without unions. A return to 19th century working conditions, where profit ruled and workers be damned. Unions might have their faults, but the evil and inhumanity perpetrated in the name of profit are infinitely worse.

    Let's not become like the USA, where it's capitalism and starvation for the masses but socialism and state handouts for the rich. Let's turn that around, and have our government rule for the benefit of all the people, not just a few fat cats.
  32. Walter Mak from Waterloo. ON, Canada writes: Misery No one from Toronto, Canada writes: 'It's the unions stupid....blah, blah, blah'

    Are you suggesting that the Canadian automotive parts industry is unionized for the most part? I beg to differ. There are many, many non-unionized shops (e.g., most of Magna, all of Linamar, and many other smaller parts producers, including all of the Japanese transplant firms).

    I don't necessarily agree with government action here, however to blame the 'evil unions' is simply wrong. The problem is one of cash flow for these firms who need their lines of credit to operate financially day-to-day. The credit crisis has caused these LOC's to evaporate in many cases, and this applies to many firms in and out of the auto parts sector.
  33. Hal West from Kelowna, BC, Canada writes: Just for once, can the Government say NO!

    Bailouts for an industry that is manufacturing products that the Public will not buy, is plain stupid.

    The NDP (Bolsheviks) in the (90's) in BC tried a similar plan, building three fast ferries before the plans were completed, costing $350 million dollars and amortized for $1,250 billion over 25 years and then basically sold for scrap at $13 million dollars.

    God help us if this is going to become the norm in Canadian Economics.
  34. Peter Lucas from koloa, Canada writes: Why would a government who says it's comitted to the reduction of green house gas, subsidize an industry that creates it?
  35. Tony . from Waterloo, Canada writes: Edrico Alberto from Edmonton, Canada writes: 'it takes a strong and principled politician to say the shortest word in the English language; 'NO'. And I must confess, the jury is still out on Stephan.'

    My own personal jury has definitely come to a verdict on Harper for this one, and it's unquestionably guilty! Corporate handouts? Harper's become a real champ of them in the last little bit:

    - $25B in loan swaps to the banks
    - $900M to the Aerospace industry
    - $300M to the automotive industry
    - New handouts through the Atlantic Canada Opportunities Agency
    - More handouts through the Department of Western Economic Diversification

    When the numbers are all added up I wouldn't be at all surprised if Harper is actually WORSE then any Liberal since Trudeau when it came to filling up the trough for friendly corporations.

    At the very least he's completely and totally abandoned his previous (correct) stance that corporate welfare is a waste of taxpayer money.
  36. Horatio Nelson from Solomon Islands writes: Is there any chance of the Stronach multi-millionaires perhaps contributing to this bailout of their own feifdom? They were remarkably quiet for the numerous years when things were going well. Oh, the marvels of capitalism: line your pockets in the good times and demand a bailout when the future looks uncertain.
  37. Peter Lucas from koloa, Canada writes: Horatio Nelson, you want to share all losses with capitalists? Or just tax their gains?
  38. Bev McDowell from Cambridge, Canada writes: Any business that cannot make a profit should not be in business. Canadian tax dollars, belong to Canadians. Do we want to hand over our tax dollars to a losing business? I, for one, so no!!!!!
  39. Neil W. Humphrey from Vancouver, BC, Canada writes: What a bunch of scam artists the Auto Industry & CAW are!!! The industry should die if they can't make it own their own. Besides if they aren't making any hybrid or alternative fuel cars which they should have done decades ago, they shouldn't exist!!!
  40. david ferguson from halifax, Canada writes: there is no reason why the government should not support the auto industry.......IN RETURN FOR EQUITY.

    look at it as business. asking the canadian taxpayer to support future profit by business is a stretch. historically, having failed to create product of quality and sticking to old manufacturing technology manufacturers have decided to distribute profit to shareholders instead of re-investing in themselves.

    there is no reason the taxpayer if required should not reap benefit of future reward, the same as any other investor.
  41. K Barkley from Moscow on the Humber, Canada writes: This is NOT shaping up to be your average recession! Is this the beginning of the end, or the end of the beginning? I mean if GM, Chrysler, and Ford are on the brink then ...what about the parts industry...what about?
    Not to mention that your pension plan and RRSP will get red ink splashed everywhere. This is very serious.
  42. Joe Blow from Blowsville, Canada writes: This is not a bailout for the unions, I can't believe I am not going to lambaste them.

    This is the owners and managemnet with their hands out this time and the answer, like to the unions, is NO.

    First rule of business is to develop a business plan, second rule is a contingency plan. Obviously these rules have not been followed.

    Where were all these giant brains and there intellect in foreseeing what was bearing down on them. Quite honestly they must have their heads shoved so far somewhere on their persons that oxygen was in short supply.

    Two words to consider 'Moral Hazard', when will people take their lumps for screwing up and accept the fate of other businesses, big or small, you are bankrupt, good bye.

    Adios from Blowsville
  43. Alber Tan from Calgary, Canada writes: Someone is going to fill the demand for cars, why do i have to support that process other than buying a car?

    Help the workers get new skills.

    The conservative party will pay a price with its base for deficit spending.
  44. Saskatchewan Seal Hunters Assoc. from Canada writes: No way. I'm sure most of them saved for a rainy day. After years of lavish spending and huge profits, I'm sure most of them have money put aside for such emergencies.
  45. Edward Carson from Canada writes: Screw the auto industry. Most of those CAW plants are full of automatons who just punch in and punch out and don't do much else. Give the money to projects where its needed in the R&D fields of medicine or even to education.
  46. Stude Ham from Canada writes:

    Too bad the auto cos are in flunky flaherty's and harper's much hated ontario.

    but not to despair... GM should convert those unused auto making plants into banks and voila... instant B$ down their corporate sumps.

    DUMP HARPER!

  47. Grey Griffin from Ottawa, Canada writes: The request was for a loan, not a bailout. If the availability of credit is the issue (or lack thereof), then the government should listen because this is an issue that affects all businesses. But if this is just throwing a lifeline to a dying industry, then we should let it die.
  48. Washington DC from Canada writes: Wow there is a lot of hypocrisy here. Happy to take the hand outs the auto sector is responsible for, but when the industry needs help everyone says let them sink. The auto sector has been driving the Ontario economy, and hence generating the money to pay the transfer payments to pretty much everyone else in the country, for years and years. Now that everyone has their natural resource money and don't need Ontario's hand-outs anymore I guess it's 'screw you Ontario', and 'screw you auto sector'. Well guess what ... your oil will run out, and your trees (if you're not smart) will too, so if we don't have a healthy manufacturing sector, we're all screwed eventually.
  49. George Nikitin from Hamilton, Canada writes: So much for letting 'market forces' prevail. Our economic system is false. Interesting that when companies need help, they get tax money. Why doesn't the money ever flow the other way?

    Let 'em die if they can't swim.
  50. Mister Fartleberry from Toronto, Canada writes: I guess we're still going to need parts to wrap around McGuintys new subsidized V8 engines. They've know since the seventies this day will come. Don't ask me for loans to produce products I find repulsive. Ask your shareholders.
  51. Rob Smith from Canada writes: What are the salaries and compensation packages of the executives and CEO's of these companies, I believe the ceo of GM is getting around 65 million a year how about Magna's executives and ceo, I believe Tobin was there for a while all feeding from the trough.
  52. Peter Lucas from koloa, Canada writes: George Nikitin, when auto companies make money, they pay a boat load of tax, so obviously taxpayer money can flow both ways.

    Washington DC, Alberta oil will run out long after Ontario's subsidized auto industry is history.
  53. Brenton E. from Canada writes: This could be productive if the government gets a real contract and the auto sector doesn't just take the money and run. The other thing is that the government should steal a little from Green Shift and demand the money be used on manufacturing that has a future.
  54. Brenton E. from Canada writes: George Nikitin from Hamilton, Canada writes: So much for letting 'market forces' prevail. Our economic system is false. Interesting that when companies need help, they get tax money. Why doesn't the money ever flow the other way?

    Let 'em die if they can't swim.
    ----------------
    but its alright to give the wealthy billions in tax cuts? Its alright to bail out Bay Street?
  55. F/A josquin from Canada writes:

    Free enterprise will never die, because socialism will always save it

    and to the dolt who goes on about 'evil' unions-------wake up.

    unions are the standard for universal working conditions. Without that standard, and in tough times, companies would erode them away to nothing.

    With a chummy conservative govt in power, the Canada labour code would be so much waste paper.

    That code exists in spite of people like you, and yet you surely enjoy it's fruits.
  56. Rob Smith from Canada writes: I have no problem with a loan with conditions such as ,how about Stronach and his family and top executives putting up their own money first and cutting or taking nothing from the company for a few years, sacrifice a little like the people they can't possible relate to.
  57. John Connor from Canada writes: Tough. They've had their turn in line. It's time the feds started looking after the people that are paying for these loans, instead of tossing money at a problem that isn't ours to begin with.

    Time to say: 'Get lost', if they fold, it's in the natural order of things.
  58. p mcg from Canada writes: Talk about a 'bridge to nowhere'. I could see this if in fact it was a bridge to allow avoiding a rough patch for a year or so but the world is changing and I cannot imagine that this would be a loan or a one-off.

    Essentially, if this happens, where does it end. Government subsidizing all major businesses once (and beyond) really will spell a huge burst in the next 2-3 years - worldwide. At least if the lumps are taken now, then in 2-3 years, recovery is possible. Things may emerge differently but that's what evolution is all about.
  59. Brenton E. from Canada writes: John Connor from Canada writes: Tough. They've had their turn in line. It's time the feds started looking after the people that are paying for these loans, instead of tossing money at a problem that isn't ours to begin with.

    Time to say: 'Get lost', if they fold, it's in the natural order of things.
    --------------
    Yeah! Who gives a damn, send the jobs to Mexico! We got oil and when that runs out we got water and when that runs out we got..........
  60. Scott Luft from Coldwater, Canada writes: I don't think many writers of the above comments finished the article or started their thoughts.
    I would agree with most that government handouts to keep struggling companies alive are bad .... really, really bad. But that isn't the issue for responsible citizens of this country.

    In a world where the imported products you are buying are subsidized or constructed in countries with protected captive domestic markets (U.S. and Korea), wouldn't an adult response be to play in the same game OR put stiff tariffs on imports.

    Do you want to put tariff on U.S. made vehicles?
  61. Guess Who from Canada writes: Let them die !
  62. Don Adams, The Centrist Conservative from Canada writes: IF Chrysler, Ford and GM were to fold, we'd still have cars. Just cars made by more efficient Companies. These Companies would have to take up the slack to compensate for the lack of production from the Big 3. Great...more sales for them, make them stronger. But, of course, they'd need more construction space, and more workers.

    Space is available...from the Big 3. Workers are available. Yeah, some wouldn't work there without a union...ok...so sit and draw EI... till it runs out.

    Some would try to start a union. Firing time :-) Against the Law? That Law is long overdue to be challenged under the Charter.

    So, would we, the consumers hurt? Somewhat perhaps.

    But we'd be hurt a lot more if either level of Gov't just GAVE money to the automakers to temporarily buy some jobs! Loans, I wouldn't have a problem with.....BUT ONLY IF THEY'RE SECURED with land, inventory, or management's personal assets.
  63. Dragline 62 from GTA, Canada writes: I wonder what sort of interest they will pay on this loan? Somehow I get the feeling that despite the scenario we are in as far as available money they will still get a far better rate than the average Joe despite being high risk.
    If the govt does approve a loan like this then have strict conditions attached. Start by rolling back the grotesque wages and eliminate the sense of entitlement that the COEs of these companies make.

    Taxpayer money should not fund the bonus clauses of the greedy slovenly pigs that CEOs have become.

  64. food for thought from Canada writes: Here's a novel idea. Let's pass a new law that states that all of those Canadians who own foreign made cars be the first to be forced to give up their pensions once our economy completely crashes. Because if you don't support your own workers and a thriving manufacturing industry you are doomed as a country.
  65. R J from Montreal, Canada writes: Let them slowly fade into the sunset while some other friendlier technology leads us into the future - $1 billion would go a long way....
  66. Dick Garneau from Canada writes: A short term loan, correction a sink hole, or at best a long term, say 4-5 years and the loan will likely never be repaid.
    Try the financial institutions or the stock market for additional funding.

    If the business is sound, the money will flow.

    .
  67. S Nelson from Canada writes: just adding my voice to the 'no way' crowd.
    if they can't make a profit the way they are running their business, then they have to change their business, not get corporate welfare.

    disgusting that they even have the nerve to ASK..
    if Harper does this there ought to be a no-confidence vote if possible.
  68. J Hanner from London, Ontario, Canada writes: I will be patiently waiting by my mailbox for my bailout cheque too.
  69. Uncle Fester from Bail Me Out, I'm on my knees, Ont., Canada writes:
    LPC needs a bailout!

    Soon we will see Margaret Atwood and Gordon Pincent speaking for the moral, but silent majority.

    While they are at it, the CBC could use a bailout so they can put together another series of Heartland and the Tutors.
  70. Not the Alliance from In my opinion, The Harper Gov't is totally Incompetent, but excel at whining that it's ALWAYS somebody else's fault., Canada writes: Harper has absolutely NO problem interfering in the free markets. It will be hard for Harper to use the 'I won't interfere' excuse because he's already proven he WILL. (Why does the myth that Harper's a 'conservative' small gov't, fiscal responsibility, etc still survive?) The banks timed it perfectly, with their year-end approaching and Harper's ill-timed, and incredibly stupid 'guarantee' that 'our banks are solid' during the election. He GAVE them all the leverage they needed and they took advantage of it. The auto parts companies don't have the same leverage. BUT, most of the big auto parts companies are in the Ontario/Quebec corridor. The big question is how this plays out from a voting perspective. Help them and hear complaints from people (eg - the people in this forum). Don't help them and lose potential support in important regions for the next election. Voting patterns. That's the ONLY thing that's important to Harper. Only one thing is certain. IF Harper helps them out - the same Harper supporters on this forum saying 'let them die' will be back cheering the move.
  71. Newfoundland First from Republic of Newfoundland, Canada writes: D Peters from Alberta, Canada writes: I feel sorry for the banks....I feel sorry for the auto industry....I feel sorry for the aerospace indutry....and all those others that live on the corporate dole....gimme a bunch on newfies anyday

    --------------

    D Peters you are an ignoramous.
  72. Kirk . from Ajax, Canada writes: A billion dollars is a lot of money - our money. Maybe we should get to vote on it. The auto industry should plead their case to us.

    Also, I'm not in a union but blaming them doesn't make sence. They asked for high wages and benifits and the companies gave it to them. The unions and the corporations walked hand in hand down this road to ruin.
  73. L. van Dyk from Canada writes: I think the problem comes from the politicians, business and finance people, higher up the pyramid than the unions or the supervisors. From what I've read these same people will benefit most from the bailouts, and the bailouts will not work, but only delay the fall.
    Maybe we need a new pyramid. The ones that built this one don't seem to know what they're doing. Maybe we shouldn't let them run things.
  74. Buddy Rich from Toronto, Canada writes: Why this favourtism towards the auto sector. Why not help the Tourism sector for instance? This must stop!
  75. Newfoundland First from Republic of Newfoundland, Canada writes: For all of you that are saying to let it DIE, I say the same thing about the Canadian Healthcare System.

    Why should we keep pouring Billions of dollars into that sink hole? What do we get in return? The budgets for Healthcare have been getting bigger and bigger each year and the services keep declining, talk about throwing good money after bad.

    Of course you socialist don't want that to happen but when we are in the middle of a financial crisis in the world you want to let some companies that have been contributing to this country for a long time just die.

    What about all the workers and the high paying jobs they have and the taxes they pay?

    I guess all those people can just go on welfare, how much will that cost us?

    The trickle down effect of job losses related to the Auto industry would be staggering and Ontario would likely become insolvent and then what?
  76. Paul who is from Vancouver, Canada writes: .

    'The Customer Can Have Any Color He Wants So Long As It's Black'.
    - Henry Ford
  77. Jonas Attali from Sweden writes: Canada is socialist now?
  78. Newfoundland First from Republic of Newfoundland, Canada writes: Buddy Rich from Toronto, Canada writes: Why this favourtism towards the auto sector. Why not help the Tourism sector for instance? This must stop!

    ------------

    Buddy, If the Auto sector in Ontario dies then there won't be a need for Tourism unless you want to give tours of ghost towns and closed shops all over the place.

    This colapse would be so wide spread that it is almost impopssible to predict, there would be a lot of garages, boby shops, restaurants, corner stores and many other aspects of the economy that will feel the inpact.

    For me, I don't give a crap as we don't have any of those manufacturing jobs to worry about, our economy will continue to grow and you people can reap what you sew when it comes to this problem
  79. bob london from Canada writes: Ontario companies are like their government, still on rich mommy's milk. Look at Dwight, he gets his shipped daily.
  80. Paul Wallnutz from Temporarily in..., United Arab Emirates writes: Walter Mak from Waterloo. ON, Canada writes: 'I don't necessarily agree with government action here, however to blame the 'evil unions' is simply wrong. The problem is one of cash flow for these firms who need their lines of credit to operate financially day-to-day. The credit crisis has caused these LOC's to evaporate in many cases, and this applies to many firms in and out of the auto parts sector.'

    Great post Walter. After reading all of the others you are one of the very few who actually seems to get it! Cheers.
  81. Crusty Curmudgeon from Ottawa, Canada writes:

    How about the company executives with their $100 mill per year actually take their money and re-invest it in the company that was so good to them? WhaT? they don't feel it is a good enough investment you say?

    Why is it that the tax payer pays for everything when the executives who drove the company into the dirt get away with billions?

    They risk nothing it seems and we foot the bill.

    It is time for legislation to curb the corpoarte greed of executives -- and reclaim the tax payers stolen money from them.
  82. Gardiner Westbound from Canada writes: The troubled automakers and parts suppliers are the ones making poor quality cars. Taxpayers won't buy a Detroit-3 car but will find themselves paying for one anyway. It's not right.

    The term 'liquidity crisis' means the affected automakers and parts suppliers are insufficiently creditworthy to qualify for bank lines of credit. The government provided liquidity to the banks to make loans two weeks ago by buying up their riskiest mortgages.

    Free money is pure profit. No input costs are incurred. It is easier and better than making marketable products. The government must limit executive compensation and take an equity position in any company receiving taxpayer money.
  83. David Browne from Toronto, Canada writes: These are the very people that wanted smaller government and less government involvement in the market place. Let's hold them to it.
  84. Ryan Ginger from Canada writes: Corporate welfare at its best!

    If the carmakers can't make money in these times, then shut em down. Many should have disappeared even in the 'fat' years.
  85. klaus mayers from lund, Canada writes: what about some help to the small business owner. if you are late a couple of days to pay your taxes,rightaway you are hit with penalties. if people decide your product is not requiered anymore,you close the doors or find some other means of making a living. it is obscene to to pay unskilled labour the amount of money and benefits they belive they are 'ENTITLED'to. think about it- if joe blow earns some $70.000to $100.000 p.a for sweeping the floor,how much should a person with a trade earn? only in the auto industrie is this happening.
    the request from the parts manufacturers is not for a handout but for loan guaranties, so give it to them and if they default on repayments take over their plants and sell everything. the gov. most likely will break even dont give them money just to stay open cause a 1/2 year later the company closes anyway to move production to some banana republic the money saved would be better used to pay for retraining and pay ui to the folks who lost jobs
  86. Geoffrey May from Canada writes: We are poorly served by articles such as this one . Is the current difficulty in auto-parts 'temporary' and is it connected to the credit crisis ? Or is it the result of NA automakers refusal to produce more energy efficient cars .Are the workers wages too high, or is it the executives salaries that are making it uncompetative, or both ?
    G&M online poll asks for our opinions , but G&M article doesn't give enough information to make an intellegent choice .Much like the media's useless 'To H*ll with the facts , just give us an image' election coverage.Just think , if the media had understood the Green Shift, or Green Party Tax shift, we could be retooling for a more energy efficient future.Instead we have Harper , who has demonstrated himself incapable of handling the economy in good times, staying the course as the course leads on to the rocks.
  87. Paul Wallnutz from Temporarily in..., United Arab Emirates writes: klaus mayers: You bring up a great point. If the Ontario auto industry collapses then $1 billion will seem like pocket change when it comes to paying out EI benifits, skills retraining, and welfare.

    We are in for a very rough ride!
  88. JA M from Our Town, Canada writes: If you want 1 billion dollars then hold a telethon or a garage sale.
  89. Newfoundland First from Republic of Newfoundland, Canada writes: Everyone talks about how the Big 3 make crappy cars. GM had the largets increase in market share in Europe last year and if up to 10% of all cars sold in europe. They have doubled sales in Russia and are leading the industry. They are doing this in the back yard of the Auto makers you all drewl over here, Toyota, Honda, Hyundia and Audi and all the other European based auto makers.

    It is just the suckers here that are convinced that GM doesn't make quality vehicles.
  90. Edward Carson from Canada writes: Foodforthought - so what of the 'foreign' cars that are made in Canadian plants?
  91. John Connor from Canada writes: Brenton E. from Canada writes: John Connor from Canada writes: Tough. They've had their turn in line. It's time the feds started looking after the people that are paying for these loans, instead of tossing money at a problem that isn't ours to begin with.

    Time to say: 'Get lost', if they fold, it's in the natural order of things.
    --------------
    Yeah! Who gives a damn, send the jobs to Mexico! We got oil and when that runs out we got water and when that runs out we got..........
    -------------------------------------------------------
    You're obviously an uneducated slob.
    Get an education, there are other more lucrative fields here.
    Otherwise, feel free to head to Tiajuana with the rest of the tools.
  92. Christopher Kiely from Canada writes: Misery No one from Toronto, Canada writes: It's the unions stupid. Get rid of the unions and then only then will the auto manufacturers be able to run their business's in a profitable way.

    _______________________________________________________

    The fools designing and marketing cars no one wants are non-union.

    Why is it never managements fault Misery??? Having unions does make it difficult to make the required changes needed to become profitable when a company is in a hole BUT the company usually gets in that hole because of stupid MANAGEMENT decisions.
  93. John Ross from TO, Canada writes: Just what is needed - public money to subsidize Frank Stronach's $50 million dollar per year 'consulting' pay!

    Enjoy Frank - this one is on us - The Canadian taxpayer.
  94. Peter Wojnar from Hamilton, Canada writes:

    Thirteen years of Liberal governments certainly left quite a mess that the Conservatives had to inherit.

    Well done Liberals!!!

    I see McGuinty is now preparing the very same mess for the next Ontario government.
  95. If I had a million lobsters from Halifax, Canada writes: I love my Kia - it actually runs unlike the crap we make
  96. Ray Crawford from Toronto, Canada writes: NO! NEIN! NYET! If these autoparts manufacturers get any handouts from the government, they'll be back for more...guaranteed.
  97. Buddy Rich from Toronto, Canada writes: Dear Newfoundland First from Republic of Newfoundland, Canada:
    Your widespread comments mean nothing it's just talk...and it's cheap. I have to say that I find it very surprising that you might not see the importance of Tourism for all regions of Canada since you are from Newfoundland (are you?). The manufacturing/Auto sector is very much concentrated in the big cities, not the region...Therefore for Canada has a whole the impact of tourism is greater than the Auto sector, sorry.
  98. John Connor from Canada writes: food for thought from Canada writes: Here's a novel idea. Let's pass a new law that states that all of those Canadians who own foreign made cars be the first to be forced to give up their pensions once our economy completely crashes. Because if you don't support your own workers and a thriving manufacturing industry you are doomed as a country.
    -----------------------
    I have a better idea. When they can make a vehicle HERE, instead of primarily offshore that's worth driving, fine. Until then, not a chance.
  99. S Nelson from Canada writes: it would be horrible for the little guys to lose their jobs, but if their jobs are based on false profit (ie gov't subsidies) then what's the difference between that and EI, anyway?
    Ultimately, if GM wants to stay afloat, they DO have the money - take it out of the banus packages for the CEOs. Tell the big boys, 'Sorry guys, we didn't do very well this year.' I mean, is that such a radical thought???
  100. J Kooman from Canada writes:
    It is unlikely that a billion dollars will meet the need of our auto parts industry. Let us prepare a long term plan.

    Given our hourly rate is about $30/hour (about $20/hour higher than developing countries like India, China, Malaysia, ...), the rescue plan requires enough funding to subsidarize the auto parts industry for at least 20 years. That will come to about:
    20,000 head counts
    2000 hours/a
    20 dollars/hour
    20 years and
    that is a $16 billion bill for taxpayers.

    ...
  101. Newfoundland First from Republic of Newfoundland, Canada writes: Buddy Rich from Toronto, Canada writes: Dear Newfoundland First from Republic of Newfoundland, Canada:
    Your widespread comments mean nothing it's just talk...and it's cheap. I have to say that I find it very surprising that you might not see the importance of Tourism for all regions of Canada since you are from Newfoundland (are you?). The manufacturing/Auto sector is very much concentrated in the big cities, not the region...Therefore for Canada has a whole the impact of tourism is greater than the Auto sector, sorry

    -----------

    Buddy I realize how important the Tourism sector is, it is huge here in NL. That being said the economy still needs to have money in it and people need to be spending.

    Most times when there are events here directed towards tourist there is a large Private Sector component to the funding through advertising and give aways, prizes etc.

    The point I was trying to make is if we lost hundreds of thousands of high paying jobs where is the money going to come from to support tourism? I would suspect the bulk of tourism dollars that are spent by travellers are intra-provincial and not from outside the country.
  102. PROUDCANADIAN2008 B from toronto, Canada writes: Who's next in line asking for money? the OIL COMPANIES
    not making enough to survive these bad economic times.
    Perhaps we should help them out too.
  103. Bob Cajun from Canada writes: What we have seen in the last month is worse than a bail-out - its protectionism!

    Let's face it, the banks were 'bailed out' only cause other countries bailing out their banks meant a comparative advantage for their banks

    Auto manufacturers need a bail out only cause other countries bailing out their auto industry means a competitive advantage for them.

    Every government is going to go broke with this defacto protectionism

    But the root of the problem in all these cases is the cost of capital. Other countries want to address that issue with sector bailouts, that is there problem. Canada needs to regulate its money supply in a manner that will bring the cost of capital to next to nothing, so that the answer to every question of where to invest is Canada.
  104. James S from Canada writes: People here seem to getting confused between the automobile manufacturers and the auto parts manufacturers.

    Unlike their bretherin in the 'Big 3', employees at auto parts plants make significantly less money. The vast majority of these companies are very-fiscally conservative - they have to be when their Big 3 customers routinely ask for reductions in parts costs year over year in order to retain the privilege of supplying to them. Some of these plants are also not unionized, and use progressive compensation systems like profit sharing. The smart ones have also diversified who they supply to, adding in Toyota and Honda to.
  105. john henry from halifax, Canada writes: I hope some of these people in here live long enough to work for 1.00 hr.
  106. David Gehring from Kingston, Ontario, Canada writes: Subsidies to the private sector only work if the business model is sustainable. These auto companies have already received millions in taxpayer-funded handouts and yet they are still struggling. If the free market doesn't want those overpriced unreliable cars, then we should stop trying to prop them up. Loans to these companies would be unrecoverable. In fact, it would be a bad idea for the government to even provide funds through a share issue here. To the federal government, please stop pandering to a few southern Ontario ridings and put an end to these makework projects.
  107. dreaming of a green party majority from Canada writes: Next geneneration industries like biotech are failing because of a lack of risk capital here in Canada yet we continue to support auto and auto parts companies which are in the throes of complete collapse even with government support! Nice money well spent
  108. joe london from london, Canada writes: J Kooman we could work for free and it still would be cheaper to manufacture cars in the countries you mentioned.If you want to give up pensions benefits health and safety standards environment regulations etc.... we could compete with china.By reading these responses it seems people throughout Canada feel we should go that route.
  109. Matt C from GTA, Canada writes: We need to even the playing field in the auto-industry. Labour costs a fraction of what it costs in the US and Canada in India, Mexico, Korea, etc. How can we expect to compete with countries that share a completely different standard of living and hence, a completely different cost structure. Sure, there are supposed to be cost savings to the consumer but if we continue to shed jobs due to our competitive disadvantage in labour, then where will the consumers come from? Not too mention that the distribution of wealth caused by these “savings” seems unevenly spread toward the wealthiest. The more I see of globalisation, the less I believe the economic models that predict greater prosperity due to lower trade barriers. Perhaps this is true in the worse-off countries but here in North America, it would seem to be having the opposite affect to me as our economy moves further and further away from producing tangible things and leans more and more on service related jobs. My question becomes, what happens when your entire economy is based on lower-paying, service industry style jobs and suddenly the last of the higher paying, manufacturing style jobs disappears? Who is left to buy the services? This is all theoretical of course but I think that a slippery slope has been created as we lose more and more high paying jobs and replace them with lower paying ones. Our government needs to protect the higher paying jobs that are left and level the trading field before globalisation leaves us without a tangible job base.
  110. Cowtown Chick from Canada writes: If the governments don't do this, how many people are out of work? Where would they get new jobs? How would they pay their mortgages and put food on the table?

    It's a much bigger picture than just 'bailing out' the auto industry.
  111. M Childs from Barrie, Canada writes: We have a problem Canada A few months ago our Liberal Ontario Government doled out 500 million to companies who want to establish themselves in Ontario in the Auto sector. Foreign companies snapped up the offer. However, they brought their presses, and automation with them and we paid for it. There are internationally well known 100% Canadian companies who build all the equipment these companies would ever need right here in Canada. These Canadian companies build, stamping presses, automation, tooling, and welders, and paint lines, and virtually everything these foreign companies would ever need. Canadians have been doing it for years, and generations. We are good at it, not only good but widely accepted around the world at being the BEST! The problem here is that Canadians didn't get any of this business and it was given and paid to foreign companies. The Liberal government in Ontario didn’t say, you must use Canadian workers, Canadian equipment, Canadian innovation. It didn’t provide the Canadian high skilled job market with anything. They just gave it away to foreign companies so they could be seen as the benevolent Liberals who “create jobs” I am not saying I want a hand out; it is not right that our government takes jobs away from the Canadian Skilled Work Force by giving our money to foreign companies to pay for foreign equipment while it is widely known that Canadians are known to be the best in the world in this business... ask the Japanese, I know this personally. Either it is Free Enterprise, or it is not. I don’t want my government’s money, I just don’t want them giving it away to foreign competition. Down with Socialist bleeding heart Liberalism… it’s the “ism” I have an issue with. The government is there to protect us, not give us a free lunch, and especially not feed our competition, while we starve. This time in history will be seen as economic, and technical genocide in North America. Good bye freedom.
  112. steve allan from Canada writes: Not one single solitary cent. No more government bailouts, for banks or anyone else. The auto industry needs to get its costs down and stop asking taxpayers to subsidize its overpaid workers.

    End of discussion.
  113. pole cat from Canada writes: Why doesnt the auto parts industry ask its share holders for the money and leave the taxpayer alone,if they are not competitive the should sink anyway.Futhermore take that few billion dollars and invest it in toyota and honda shares and then the canadain goverment would end up making money and at the same time push the big three to either reform to the current markets or die.
  114. l jenkins from Canada writes: John Connor....

    I drive an absolutely amazing north american made car and it just keeps on going and going. It is a small car and I cannot tell you the brand here lest my post be taken down. You are wrong when you say there are no north american cars worth buying....completely wrong.

    And as I said earlier, once you destroy the manufacturing industry, you destroy the country and put all you worked for, including your pensions, at risk.
  115. The Skipper from Canada writes: If Frank & Belinda Stronach need a bailout then may I suggest that they sell those race horses out at their fancy farm for horsemeat and ship it off to France.
    Bailing out those slimely creatures on Bay Street is bad enough when they should have been hauled off to a jail cell.
    Let the auto parts industry collapse !
  116. Joe shoppin in the U.S from Canada writes: WOW! I wish they taught me to work for an automaker when I was in high school. Instead I became an airline pilot and have been through 3 bankruptcies, declining wages and no pensions whatsoever! And where do you want to send my tax money? Who's gonna feed my family when my current airline goes bust? And again where do you want to send my tax money?
  117. l jenkins from Canada writes: Steve allan...I say we also stop paying so much to overpaid lawyers, doctors, college profs., etc. You advocate a two class system, you are a snot.
  118. Save our Planet from Toronto, Canada writes: Take the money from Alberta!
  119. Tories Lie Again and Again from Canada writes: Conservative Pinheads... wake up and understand that we are in an integrated Global Economy.

    If people in Ontario don't make trucks or whatever, there is no tax money to pay the subsidies to the Tar Sands Companies so that you can keep your jobs when the price of crude drops below the production cost.

    Time to face it... no man is an Island and unless you are can produce all the food and goods you consume yourself, you are a slave to market forces and taxes.
  120. l jenkins from Canada writes: By the way steve allan.... Once you take all those jobs away from our workers and ship them overseas, you then take away their purchasing power and they have no money to pay for overpriced lawyers and imported cars.....Did you ever think of that???
  121. John Ross from TO, Canada writes: Just what is needed - some public funds to subsidize Frank Stronach's $50 million per year 'consulting' job.

    Enjoy Frank - this one in on the Canadian taxpayer!
  122. Sweeney Todd from Oilberta, Canada writes: This is a very difficult problem, with no clear solution. The Detroit 3 and their parts suppliers are very much on the ropes. Folks in ON should really do some hard thinking about this situation.

    If they get gov't money to stay in business, then that's largely a load of public cash to stave off the inevitable. These things always turn out to be money pits, with no bottom. This isn't right. Besides, if the US doesn't bail their side of the industry out, then what happens here is irrelevant. But remember, the US won't be kicking-in loads of cash to keep plants open in Canada. The Canadian gov't would have to do that.

    If they don't get gov't money, and they sink, then this will also be a huge problem. Many say 'good riddance'. All a lot of you can focus on is how much you resent the $50k a year janitor in the assembly plants. Make sure you look past that, to the huge number of jobs at stake, including several times the up-front number in spin-off jobs. Then, there's all the bad-debt that will be left behind when these companies go bankrupt. This will be VERY nasty indeed. Many people believe that these companies failing won't impact their lives. After all, THEY don't work in the auto industry. You won't have to actually work in the industry to find yourself in the crater it will leave when it's gone.

    So, as I see it, the choices are between two things that are pretty awful. Craters form abruptly, while pits a slowly dug. But they're both holes. It's just a matter of how fast they show up.
  123. J M from Calgaristan, Canada writes:
    $50 BILLION to BIG OIL

    $17 BILLION to BIG BANKS

    $?? BILLIONS to BIG AUTO

    It's getting expensive to buy an election.
  124. food for thought from Canada writes: It appears that many people who post here need to take a course in basic economics. You cannot support your massive 'imported' economy in a country where only the rich can afford to buy anything. In Canada you have put all the workers out of jobs. What are they supposed to use to buy things with? Dirt? I'm afraid Canada is in deep trouble unless the manufacturing industry is bailed out and unless Canadians wake up and realize they need to purchase Canadian made products. There are literally millions of poor working Canadians, those with part time and low paying jobs who are paying over $1000 monthly in rent. They only purchase gas, food and shelter, and pretty month nothing else.

    Dang, judging fro the selfishness of the posts here, Canada is in deep trouble.

    Oh and to Steve Allan - If you are going to lower workers' wages are you also going to lower the outrageous cost of housing in Canada? You can't have it both ways.
  125. pole cat from Canada writes: Basiclly its the greedy unions fault,how come toyota and honda can produce cars in ontario?Ill tell ya why they have no unions and pay well without unions.
  126. b W from Canada writes: When loans were given to other companies, they put restrictions on executive compensation. In this instance, if the loans are given, put restrictions on all compensation as the unions are as bad as the executives. If these restrictions include escrowing a percentage of current wages until the loan is repaid, even better. In this way, the company and their employees suffer as well, and put hte taxpayers ahead of their own for the taxpayers' pain.
    I also agree that the loans will be wasted as both GM and Chrysler are in too much trouble, they will have to file bankruptcy and restructure, and Ford is not far behind (although surprisingly in better shape). Therefore, there should be conditions palced onthe loans to make them 'bankruptcy proof' (i.e., securitize the loans, etc.), to avoid its total loss.
    And yes, to all those who look back, the auto industry contributed greatly to the growth of Canada and the unions had a place and time. Unfortunately, things change. And we need to adjust our thinking to adapt to current times. Green technology, renewable resources, etc. is the future. Why are we so behind the times and constantly being dragged backwards?
  127. Joe shoppin in the U.S from Canada writes: FOOD FOR THOUGHT- Just so you know my HONDA was made right here in ONTARIO. The big losers will be all those mechanics that made a fortune fixing all those FORDs, CHRYSLERS, and GM's......
  128. food for thought from Canada writes: pole cat...sure they have no unions...but on the flip side...why don't you go into the mall this weekend and try to find a single article of clothing that is made in Canada. I tell you...we are in deep trouble. Now off you go to work in your imported car while you listen to the radio report about how our retail, manufacturing and market industry is crashing even more today while you pass all those rental dumps that cost over $1000 monthly and ponder the fact that even you might lose your pension fund.

    You are selfish and shallow.
  129. Peter Wojnar from Hamilton, Canada writes:

    >>food for thought from Canada writes: Here's a novel idea. Let's pass a new law that states that all of those Canadians who own foreign made cars be the first to be forced to give up their pensions once our economy completely crashes. Because if you don't support your own workers and a thriving manufacturing industry you are doomed as a country.

    Sure, as long as all people who own clothes and shoes made in places like Asia and the Dominican Republic have to do the same.

    By the way, what exactly is a 'foreign car'? We have Toyota's that are manufactured in Canada with many Canadian sourced parts, yet I can buy a Saturn that's entirely made in Europe.

    And one more thing. Why does it matter where something is made or where a service is performed? This kind of thinking borders on being racist. Do you have something against Asian's, Germans or Swedes?
  130. food for thought from Canada writes: Your honda was likely made with imported pots and most of the salaries went to foreignors
  131. J A from Halifax, Canada writes: Oh yeah, could ya bale out us citizens that need an extra 100 bucks a month for rising costs of little essentials too? Like food. Priorities are so screwed up.
  132. Child of the North in Canada from Canada writes: If there is to be handouts, let's give money to green start-up industries to drive down the price of oil back to where it belongs $10/barrel. We need competition in the energy industry to drive down oil prices. Also no help to farmers (mad cow hits - tough, crops fail - tough). Let's be clear. If people want to get tough on government handouts, we get tough. No picking and choosing who to help. Right?
  133. Sweeney Todd from Oilberta, Canada writes: Joe shoppin in the U.S from Canada writes: FOOD FOR THOUGHT- Just so you know my HONDA was made right here in ONTARIO. The big losers will be all those mechanics that made a fortune fixing all those FORDs, CHRYSLERS, and GM's......

    ========================================

    One of my sons is a journeyman auto mechanic. He got out of it, because the pay was so poor. The myth of the 'highly-paid auto mechanic' is just that.
  134. Linda Dial from Canada writes: “Clearl y the minister has to see this letter and he has to talk to his colleagues as well” before he can formulate a response, said Bill Rodgers, the communications director for Mr. Prentice.' In other words he has to talk to our Dear Dict. who has been most conspicuous in the last 2 weeks for his disappearance. Where is your hero, Peter Wojnar, has a liberal cat got his tongue? Don't count on Parliament opening anytime soon when a budding Dictator is in power.
  135. pole cat from Canada writes: food for thought from Canada sorry to burst your bubble but i drive a chevy and buy canadain,And i also live in new brunswick and buy everything i can from new brunswick.The truth is the unions had a place and now they dont,and one other thing why dont you find out why you cant buy anything in the mall from canada,i can tell you why because of the price.I know the quality isnt even close to canadain made products but alot of ppl cant afford those union made products.
  136. John Connor from Canada writes: Tories Lie Again and Again from Canada writes: Conservative Pinheads... wake up and understand that we are in an integrated Global Economy.
    --------------------------------------------------
    Yes we are, but when will you leftist twerps get the picture that in order to be self-sufficient, industry has to rely on itself and its' workers to get through the rough patches? Not just the Canadian taxpayer. Unless of course you don't happen to pay taxes, then it doesn't matter. Is that the truth of your situation, or are you simply ignorant?
  137. food for thought from Canada writes: Ooops... Your honda was likely made with imported PARTS and most of the salaries went to foreigners.
  138. Peter Wojnar from Hamilton, Canada writes:

    >>Where is your hero, Peter Wojnar, has a liberal cat got his tongue? Don't count on Parliament opening anytime soon when a budding Dictator is in power.

    I don't have any heros.
  139. Penny Dreadful from Waterloo, Canada writes: Lovely. We want to take taxpayer money and hand it over to the auto industry so their CAW employees can continue to make much more than the average taxpayer. They've got the Robin Hood act backwards. Not a penny unless the employees and management share the paid through wage reductions.
  140. food for thought from Canada writes: Dang you people are missing my argument because most of you seem to be in the upper income brackets with secure jobs. My world is about to come crashing down because of the Chrysler issue. About five immediate family members are going to be affected. We no longer buy anything but food and gas. You don't seem to get it. The reason the retail industry is down and the economy is crashing is because the working poor in Canada and even the middle class no longer have any purchase power, especially our youth. And stop bitching about unions. That argument is old. There are few powerful unions left in Canada, and they certainly don't exist in the auto industry. Unionists there have already been cut back. This is truly about an incredibly selfish Canadian consumer and the problem is unique from the American problems. The Americans will come roaring back because they are patriotic enough to 'buy American'. They fully see how wrong it was to send everything overseas and destroy the purchasing power of their people. But Canadians don't get it.
  141. Non Partisan I AM Canadian from Canada writes: AK 47s and HEROIN!! GET YER AK AND HEROIN RIGHT HERE....FOR NEW NEW WHOLESALE PRICES!!! GET EM WHILE THEY'RE HOT! DO NOT LET THE THRID WORLD GROW AROUND YOU WITHOUT EM...GEM YER AK..

    I am joking.

    But really....

    You just have to know that a massive uprising is coming.
  142. W N from United States writes: Shame on all those foolish and selfish people who wish the auto industry die. Do you people have even a faint idea of what the consequence would be if the auto industry dies? This industry is the main economic driver in Ontario. I am not talking about just the GM, Ford or Chrysler, but all the part suppliers, and the service industry down the food chain. If the Ontario economy goes down the drain, do you think you will be better off in BC, and Alberta. People won't be byuing new houses, and won't need your lumber. people won't be driving and won't need your oil. If the domestic auto industry fails, umemployment will soar, and tax payers will foot the bills anyway. People will loose their jobs and will have no money to pay for their mortgage. Foreclosure will soar and drepress the home prices. When these companies fail, will they buy the IT technology from the company you work for? What will happen to your job then? Will these people without job eat out or travel as normal. What will happen to your business or your job. How can you people so heartless to wish thousands of people loosing their job, their homes, and their dreams. In this economy, we all need each other. Shame on you folks calling yourself Canadian and yet be so selfish and ignorants.
  143. Vote NDP in the next federal/ provincial election. from Toronto, Canada writes: I can't believe most people who posts here with outrage saying that the auto parts sectors deserves no help and how free markets should correct itself. This is like saying to seniors how it's their fault that they didn't save enough for retirement and they're on their own. This kind of attitude is unacceptable. The auto-parts plants didn't create this demise. Wall St did this. When I hear the issue of seniors pensions getting cut, people are outraged. Okay, fair enough, so how come there's equally outrage (especially by the same people who are outraged who are getting their pensions cut).

    The auto sector has contributed to Ontario so much via jobs, tax revenue, R and D etc.... not its time to support them through these difficult times. And believe me, the notion of 'free markets' isn't going to help any time soon.
  144. Non Partisan I AM Canadian from Canada writes: Use some monjey to switch a good number of your lines over to producing electric cars, and get that business running.

    Sheesh.

    The winds are already blowing, so why not fly into that stream and get some speed?
  145. food for thought from Canada writes: WN from the USA. Thanks for backing me up. I lived in the USA for some years and I am grateful for the good job they gave me. I came back to Canada this summer and I am furious at the absolute lack of intellect that exists here.
  146. Child of the North in Canada from Canada writes: I guess conservatives won't be happy until all manufacturing jobs are gone for good and Canadians work for $7/hr. Won't Canada be lovely then. Nobody earning enough to pay taxes. No health care cause there's no taxes collected to run it. No government run pensions because nobody makes enough to pay into them. No post-secondary education, who can afford it? People living a dreary, daily subsistence trying to survive. Yes, a curmudgeons heaven.
  147. pole cat from Canada writes: food for thought welcome to my world,living in the east coast is not a great carreer move but it was best for my kids.I dont make alot of money now either,but i get by and the wife has to work too and no the goverment doesnt pay for daycare either nor would i let them there my responsibilty.I have a garden every year and hunt and fish and i do all of this and more without a union.U
  148. pole cat from Canada writes: Didnt get to finish the post but u get it i hope.
  149. Child of the North in Canada from Canada writes: Good for you pole cat, but hunting and fishing is out of the question if you live in Toronto. Should we all move to New Brunswick and live off the land with you? Get real.
  150. Non Partisan I AM Canadian from Canada writes: 'OR put stiff tariffs on imports.'

    Hello Depression
  151. john earl from Charlottetown, Canada writes: D Peters ,, Here Here . Too many people pushing paper and not creating a damn thing.
  152. Conservative for lower taxes, cheaper gas, less government from Canada writes: Are auto workers more important then forestry workers? Thousands and thousands of Forestry Workers have been out of work for over two years. The Auto Parts people cannot expect to jump to the head of the line while others, who have lost their jobs a couple of years ago, continue to be out of work and out of money.
  153. Fraser Young from St Catharines, Canada writes: The APMA said no way to helping sell more new cars through our Green Vehicle Exchange Program. What part of selling more new cars doesn't mean having to make more new parts. These guys don't get it and will go to the junk yard after they drive the industry into the ground, just like the old cars will.

    I've forwarded my idea to MTO Hon. Min. Bradley to ban all 1995 and older vehicles(except antique and special use)so that more people will buy new ones now and air pollution would go down 40% in cities.
  154. pole cat from Canada writes: Child of the North sarcasm will get you no where.
  155. Offshore Reg from barbados, Canada writes: Food for Thought...actually, even after a few visits that the 'lack of intellect' crowd is significantly over-represented on this site in particular.
  156. Jared Mulligan from Canada writes: The reality is that it's once again the North American companies asking for assistance. Toyoto, Honda, and the other foreign companies who have set up shop here are not asking for the same assistance. Unlike the banks, this is not the first time this industry has come for help. It's obvious the industry structure requires a complete overhaul starting with the obscene salaries of the executives down to the 'technicians' working on the line for $40/hour. Government support is one thing, but government support for companies producing inferior products that are not competitive in Canada let alone the world is a waste of money. If the government wants to provide assistance it needs to get the North American auto industry to committ to a restructuring and filter the money to retraining (and relocating) auto workers to other industries that actually do work in this country.
  157. Non Partisan I AM Canadian from Canada writes: 'How about the company executives with their $100 mill per year actually take their money and re-invest it in the company that was so good to them? WhaT? they don't feel it is a good enough investment you say?

    Why is it that the tax payer pays for everything when the executives who drove the company into the dirt get away with billions?

    They risk nothing it seems and we foot the bill.

    It is time for legislation to curb the corpoarte greed of executives -- and reclaim the tax payers stolen money from them. '
    .
    .
    .

    And there it is.

    This seems to be a rather exact truth,
  158. Not on this Blog from Montreal, Canada writes: When I hear the issue of seniors pensions getting cut - example please.

    Wall St did this - no, the Auto Industry did this - You might want to check out how Chrysler had to get Government protection under Jimmy Carter 'cos they were bust
  159. Non Partisan I AM Canadian from Canada writes: I dunno; maybe it's time to just start mass producing tanks and badgers, and jets.
  160. Jimmy connors from Canada writes: 'It's the unions stupid. Get rid of the unions and then only then will the auto manufacturers be able to run their business's in a profitable way.'

    Wrong stupid! The unions are not responsible for hanging to the concept of building large, hideous looking, gas guzzling vehicles.

    Management are the ones who make all the business decisions (duh) and it gets them into hot water every time. It's not the unions fault people don't want to buy garbage vehicles, management isn't smart enough to react to market needs.
  161. food for thought from Canada writes: Not on this Blog...Seniors pensions are tanking, not CPP..yet, but their investments in markets are tanking their pensions. And CPP is also heavily invested in the markets. By the way, I got my letter from social security this summer that said social security was bust in 2012. Don't sit around and imagine this cannot happen in Canada, because it can if we continue to spend all our disposable income on imports and put our youth either out of work or into a desperate situation - which seems to have already happened- there will be no tax dollars or anyone to support you when you get really old.
  162. Chris Kempan from Winnipeg, Canada writes: I love many, many uninformed opinions, that's why I'm drawn to these pages.

    About 2 people understand the problem here - cash flow. These firms need cash to operate but the loans have dried up because of the crisis.
  163. Sweeney Todd from Oilberta, Canada writes: None of this discussion regarding parts-makers will matter, unless auto sales in the US improve drastically. But sales are down (for the Asian makers, too) and getting worse. The assembly plants won't buy parts, so they can assemble cars that nobody is buying. A big part of the sales drop is the credit situation in the US. Remember that 80 - 90% of parts and autos manufactured here, are exported to the US. Until their credit mess is worked-through, this is it. Well, unless the Detroit 3 actually go broke. Estimates are that that particular scenario would leave over $1 trillion US in bad debt, if & when all three go under, and take their subsidiary parts makers with them. This would be a hard blow for the financial system to absorb at the best of times.
  164. food for thought from Canada writes: Overpaid union workers?????????? Are some of you for real?????

    Remember Lehman Brothers which went bankrupt this year?

    Read the following quote?

    Lehman Brothers Inc. Chairman and Chief Executive Richard Fuld received compensation valued at $22.1 million in 2007,
  165. Sweeney Todd from Oilberta, Canada writes: Chris Kempan from Winnipeg, Canada writes: I love many, many uninformed opinions, that's why I'm drawn to these pages.

    About 2 people understand the problem here - cash flow. These firms need cash to operate but the loans have dried up because of the crisis.

    ===========================================

    No, Chris - the root problem is that car sales are way down in the US. The secondary problem is the credit issue so the industry can try to survive until things turn around.

    The worst-case scenario for Canadian taxpayers is to pump loads of money into the parts biz, then have the Detroit 3 go broke anyway.
  166. Peter Wojnar from Hamilton, Canada writes:

    >>Child of the North in Canada from Canada writes: I guess conservatives won't be happy until all manufacturing jobs are gone for good and Canadians work for $7/hr. Won't Canada be lovely then...

    What does this suddenly have to do with Conservatives?

    Canada lost the greatest number of manufacturing jobs ever during the past 13 years of Liberal governments.
  167. David Stevens from MONTREAL, Canada writes: My answer is NO

    I the government should invest in car companies that meet the following criteria.

    Build here a car that is 100% Canadian made. Canadians would by this car above all others. We are as patriotic as our neighbours to the south but we don't have any Canadian products to buy. How about bringing back the Made in Canada stickers I remember as a kid.

    Build a car that is fuel efficient on a par with the Yaris. Therefore recession proof. These cars are still selling like hotcakes.

    DO NOT give a cent to any car company that has ASKED for a handout. Only those that have proven themselves competent with government handouts should be considered. That probably rules out all US companies but to h*ll with them. Let's realize that the US is a foreign country just as Japan is. The US does not have our best interests at heart anymore than China does. Do you keep giving money to someone who spends their time gambling and partying. No. That's what executives of North America's car companies have been doing by building SUV's and giving themselves ridiculous pay packages while they cut jobs. They have to pay the price.

    Give money to existing canadian vehicle companies to develop Canadian products.

    SEE THIS
    'There are two electric car manufacturers in Canada - and the government is killing them both. The one in BC has already shut down operations and is moving elsewhere, and the one in Quebec says they may soon go, too. Is this the Avro Arrow all over again? Canada comes up with world-leading technology, and our government caves to American corporate pressure to kill off what could be an entry for Canada into the new green economy of the future?'

    http://www.cbc.ca/video/popup.html?http://www.cbc.ca/mrl3/8752/news/features/sherren-electriccar-071025.wmv
  168. J Hare from Saskatoon, Canada writes: Edrico Alberto, your comment was silly, words such as 'a', and 'I' are the shortest in the english language. There are pleanty of 2 letter words. Perhaps some my schooling is in order no?

    James Hare
  169. food for thought from Canada writes: Sweeny Todd....You need to read my posts....First, ALL autor makers, including Honda have declining sales. The truth is that the cost of living is so dam high that NO ONE HAS ANY PURCHASING POWER. Dang, why doesn't anyone get it. Of all the jobs created in Canada this past year, precious few were full time jobs. Nearly all were low paying part time jobs which provide only enough cash for rent in a dump and maybe some second rate food. The only reason China is starting to suffer is because Americans are boycotting their products. It's China's exports which are suffering.
  170. Non Partisan I AM Canadian from Canada writes: 'The reality is that it's once again the North American companies asking for assistance. Toyoto, Honda, and the other foreign companies who have set up shop here are not asking for the same assistance. '
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    Just wait until 'they' have to pay out pensions to their workers for generations; like the Big 3 have, They, too, will have major expenditures when this happens. Toyota employees better hope that the markets are favorable furing the tenure of their pensions. UNless, of course, penions are not part of their packages.
  171. Child of the North in Canada from Canada writes: The situation in the US is not going to change soon. Remember the unions everybody hates in Canada? Well they are long gone in the States. The result is that many manufacturing jobs have been off-shored to Asia or Mexico and service industry jobs at home are being done by illegals working quietly under the table for minimum wage with no benefits. The only way many Americans could afford to buy anything throughout the last decade was cheap credit. Many were forced into debt because of an illness which they had no healthcare coverage for. Even if the banks stabilize in the US and credit is ready to flow, who has a job that pays enough to buy a car or a home? This is the problem the US faces.

    For all the union busters in Canada, this is the road we are heading down too. You cannot run the society we have become reliant on if everybody works for minimum wage. It is only a matter of time before we face the same dilemma the Americans are facing.

    If we let these car-parts manufacturers collapse in Ontario, those jobs will be gone and they will not be coming back anytime soon. The US government has made a commitment to the US car manufacturers because, as late as it is, they realize how important the car industry is to the health of America. We still have a chance to save these industries in Ontario. I hope we don't let them slip away.
  172. food for thought from Canada writes: Thanks Child of the North....now when you go out and shop for Christmas products, make sure you check the label first because there are plenty of products made right here.
  173. Non Partisan I AM Canadian from Canada writes: Perhaps you didnt see read it, so I will repeat it:
    .
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    'Lehman Brothers Inc. Chairman and Chief Executive Richard Fuld received compensation valued at $22.1 million in 2007'

    And this was done, despite, failing his shareholders and employees. He was paid this much.....to fail.
  174. Non Partisan I AM Canadian from Canada writes: 'SEE THIS
    'There are two electric car manufacturers in Canada - and the government is killing them both. The one in BC has already shut down operations and is moving elsewhere, and the one in Quebec says they may soon go, too. Is this the Avro Arrow all over again? Canada comes up with world-leading technology, and our government caves to American corporate pressure to kill off what could be an entry for Canada into the new green economy of the future?''
    .
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    Bingo
  175. Sweeney Todd from Oilberta, Canada writes: food for thought from Canada- The last report I read said that Canadian sales were actually UP slightly. In the grand scheme of things, that doesn't matter - our domestic market is WAY too small to make a difference. The main issue is the US market. It's WAY down. Most of the cars & parts made here are for export. Our biggest customer isn't buying. That's the problem.
  176. Sweeney Todd from Oilberta, Canada writes: Non Partisan I AM Canadian from Canada - Is there a big market for these cars in the US, right now? If not, then again, our domestic market just isn't big enough to make it viable.
  177. Child of the North in Canada from Canada writes: Food for thought: I don't believe in becoming isolationist. The worst situation for Canada would be if the US became isolationist and refused to buy our products. I believe that industries should be allowed to go offshore, but they should pay higher taxes for the privilege when they bring their products back into their home country to sell or be given tax breaks if they stay in their home country and create jobs. Better yet, we should work for higher standards of wages and benefits for workers in third world countries.

  178. pole cat from Canada writes: Child of the North THATS A GOOD PLAN BUT YOU WONT SEE IT IN OUR LIFE TIME NOR MY KIDS.
  179. Brenton E. from Canada writes: John Connor from Canada writes: Brenton E. from Canada writes: You're obviously an uneducated slob.
    Get an education, there are other more lucrative fields here.
    Otherwise, feel free to head to Tiajuana with the rest of the tools.
    --------------
    Oh Johnny, big fan of terminator are we! I am not an uneducated slob, I'm an educated slob. The more we shrink central Canadian manufacturing the more we need to rely on raw materials. The more we depend on raw materials the more we depend on the USA. We need to invest in green manufacturing immediately, we need to diversify our trade immediately. This means we have to re-visit Nafta, this means we need to re-visit the corporate/employee relationship, this means we have to invest more in education. If an educated slob likes yours truly can come up with some ideas, just thinks what a great robot fighter like you could come up with.
  180. J S from Canada writes: I can just hear the auto execs in my head - 'the banks got a big bail out, why not us...'

    Question - with all the billions and billions of dollars in profit that the banks and auto industry has made over the years, why don't they have enough operating capital to tide them over a recession? If the auto industry needs a billion dollars in capital, let me in to take a look at their compensation schedules. Cut the lofty executive salaries and cut bonuses and you'll have more than enough money to get you by. I don't understand why these execs can still be allowed to make buckets of money while they drive their companies into the ground through bad management and poor planning.
  181. W N from United States writes: People keep saying the domestic car makers keep making stuffs people don't want to buy. There is some truth to that, but it is also a misguidee perception. For the last decade, they 've been busy making big suvs that people wanted to buy. People didn't want small cars until the price of gas shot up the roof. They made a lot of money and upper management got indulged in making easy money. Union got greedy as well and demanded more and more. Of course, this is not sustainable, and things need to change. In the last few years , GM has produced a lot of great products that are very uncompetitive with the Japan's stuffs. They are making real effort to fight back. There have been massive layoff and down sizing in the auto industry in the last few years alone. Well, things got real ugly real fast this time. You can blame upper management for lack of foresight, but the folks down the ladder don't have much to say about what products to make or what technology to put in. Samething as in Wall street, the big guys are calling the shots on who to lend. The workers simply take the orders. I am not for the goverment to bail out the big CEOs who screwed up, but to save the thousands of jobs that could be lost, thousands of family lives that could be shattered. If we let all domestic industries fail, whether it be banking, auto, or whatever, what would happen to this country? We would become dependent on foreign conutries.
  182. annick aubert from toronto, Canada writes: Why rescue the worse polluters, let them sink!
    Via Rail should get the go ahead to build more railroad tracks, Urban Transit should be built u[, so people can leave their old jalopies at home....
    It is time for change
  183. Akbar M from Regina, Canada writes: The claim is that it is a short-lived downturn on the autoparts sector but is that true? If the car manufacturing sector is going then who are they intending to sell to? Money spent on a failing industry may not be the best plan. Perhaps money for retraining into a sector of the economy that has a future may be the better choice. I fear that manufacturing is mostly dead in this country and we have to find some other source of productivity.
  184. Not on this Blog from Montreal, Canada writes: 'Seniors pensions are tanking' Pensioners tend to live off the interest paid and dividends paid, rather than capital gains; these have yet to be cut (not saying it won't happen), contrary to NDP's latest assertion.

    CPP still has positive cashflow, meaning they should have the money to take advantage of these lower prices

    Richard Fuld received compensation valued at $22.1 million in 2007, - almost entirely in stock (correct use of the word 'valued') - see comments about why don't $100M executives invest their money in their companies.
  185. J M from Canada writes: If a company can't run their business tough beans--tax payers CAN NOT afford a 1 billion loan--no way no how!!
  186. Brenton E. from Canada writes: annick aubert from toronto, Canada writes: Why rescue the worse polluters, let them sink!
    Via Rail should get the go ahead to build more railroad tracks, Urban Transit should be built u[, so people can leave their old jalopies at home....
    It is time for change
    -----------
    Why? Jobs of course. Why? The manufacture of more environmentally friendly autos, there's a future there. If we help them then we should have some input in regards to the product. We need to get innovative again, we once were at the forefront of high tech manufacturing, we now have an opportunity to get there again.
  187. Comments closed, censored, deleted or made to disappear from Mini Bushland, Canada writes: May only the fittest (or is it the fit enough?) survive! That is what this system is said to be about, is it not? Well, then, let it be what it is all the way to extinction. --- If only we all stopped spending for the next six months... and did something more human, for a change. Just for three months!
  188. Non Partisan I AM Canadian from Canada writes: 'Is there a big market for these cars in the US, right now? If not, then again, our domestic market just isn't big enough to make it viable. ' Yes; there is a huge market of people who are financially hurting, and feeling the pinch to help, both, the environment and the economy of their country. Add the price fo gasoline, and the ever growing anomosity towards fat cats ceos (which many equate to 'oil firms'), and the electric car could boom HUGE!! Add the fact that some of that xbillion of dollars could be thrown into powerful ad campaigns to sway the rest and further cement the decision to buy electric in those who are toying with the image...and voila!! For far too long the manufacturing industry has been doing the same thing, and getting the same 'negative and tragic' results. (this is absurd; and may I say, stupid) Re-tool the current plants and retrain the current employees to make electric and hybrid vehicles; since most of the plants and workers will have the general base for making the switch anyways!! You always hear Govt speak of training programs, and increased productivity...isn't this one of the best and most obvious ways to come through on that? Who loses by doing this? (oil?) Oil companies will STILL be needed to RUN these plants, and provide gasoline to the LEISURE business which will grow, due to more spending power of the average North American.
  189. John Connor from Canada writes: Brenton E. from Canada writes: John Connor from Canada writes: Brenton E. from Canada writes: You're obviously an uneducated slob.
    Get an education, there are other more lucrative fields here.
    Otherwise, feel free to head to Tiajuana with the rest of the tools.
    --------------
    Oh Johnny, big fan of terminator are we! I am not an uneducated slob, I'm an educated slob.
    ----------------------------
    I get that a lot, loathe the show actually.
    Glad to see you have some smarts. Hope you've paid your loans off, even at maximum EI you won't last long.
  190. J M from Canada writes: child of the north--Under Obama the US will become isolationist.
  191. Non Partisan I AM Canadian from Canada writes: 'If a company can't run their business tough beans--tax payers CAN NOT afford a 1 billion loan--no way no how!! '
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    It also, logically follows that companies cannot afford 4, 8, 9, 22 million dollar executive salaries!!! [THAT seems to be the OBVIOUS change to be made.,..no?]
  192. Non Partisan I AM Canadian from Canada writes: Someone asked: 'Is there a big market for these cars in the US, right now? If not, then again, our domestic market just isn't big enough to make it viable. '. . . . . Yes; there is a huge market of people who are financially hurting, and feeling the pinch to help, both, the environment and the economy of their country. Add the price fo gasoline, and the ever growing anomosity towards fat cats ceos (which many equate to 'oil firms'), and the electric car could boom HUGE!! . . . Add the fact that some of that xbillion of dollars could be thrown into powerful ad campaigns to sway the rest and further cement the decision to buy electric in those who are toying with the image...and voila!! . . . . For far too long the manufacturing industry has been doing the same thing, and getting the same 'negative and tragic' results. (this is absurd; and may I say, stupid) Re-tool the current plants and retrain the current employees to make electric and hybrid vehicles; since most of the plants and workers will have the general base for making the switch anyways!! . . . . You always hear Govt speak of training programs, and increased productivity...isn't this one of the best and most obvious/easy ways to come through on that? . . . . Who loses by doing this? (oil?) Oil companies will STILL be needed to RUN these plants, and provide gasoline to the LEISURE business which will grow, due to more spending power of the average North American.
  193. Peter Wojnar from Hamilton, Canada writes:

    >>food for thought from Canada writes: Thanks Child of the North....now when you go out and shop for Christmas products, make sure you check the label first because there are plenty of products made right here.

    Sorry to burst your bubble, but take clothes and shoes for example.

    Canadians started buying imported clothes and shoes many years ago for one simple reason.

    They were able to afford foreign made clothes and shoes and unable to afford Canadian made clothes and shoes.

    What else would you have consumers do?
  194. Child of the North in Canada from Canada writes: It is hard to see how the big three can make it without government help in the US. Finally, GM gets it about fuel efficiency, puts all their effort in the Volt and voila - oil prices drop like a stone. How can they roll out a 35k-40k hybrid when brand new trucks are now selling for 21k. They are moving in the right direction but they got sideswiped by this market meltdown. Watch the Americans work very hard to save their car industry. The Volt is the right technology but it is going to need government help if it is to succeed. I think Canadian governments will have to do the same.

    Pole Cat: regarding tax breaks for industries creating jobs in the US. This is one of Obama's proposals. It looks like he will win. Lets see if he has the money to put it in practice. I suspect that the worst of the market meltdown has not hit the US. I am reading there will be a blowout on their currency within the next few months so all bets are off it that happens.
  195. Cowtown Chick from Canada writes: Sales of trucks, SUVs and Hummers were up in previous years, so of course we manufactured them by the truck load, so to speak.

    Then you get the sub prime mortgage crisis in the US which saw people's mortgage payments increase by 300%. So I guess they can't afford any more new cars. Add in the cost of oil & gas skyrocketing and you have a serious problem. There wasn't a big enough demand for alternative fuels a few years ago, now there is. Governments should be doing what they can to steer the industry in that direction.

    You can't put 100,000 people out of work in our manufacturing sector. Look at what is happening in Windsor. House prices are declining, people are losing their jobs and will be homeless - then what?! We can fork over billions in social assistance payments?
  196. Edward Carson from Canada writes: The made in Canada label is a farce. It used to mean that the majority, I believe it was 70%, of the product was made in Canada. Those rules were loosened about 8 years ago where it is now 75% has to be assembled but not manufactured.
  197. J M from Canada writes: Non partisan---that too.
  198. Billy Bee from Canada writes: The North American auto industry is bloated, the products are overpriced and the quality is substandard. NO WAY should we be giving the sector any $$$. Time to let the market forces run their course.
  199. Child of the North in Canada from Canada writes: JM - agree that Obama wants to bring industry back to the US, but I'm not sure that it will lead to an isolationist policy. We shall see, you could be right. If the market meltdown takes down the US dollar who knows what will happen. I am reading that the Chinese/Europeans have met and are coming to the G20 summit meeting in the US in November with a common demand that trading in the Euro/Asia zone is going to be done in a basket of currencies. Not being able to just fire up the printing presses in Washington may really crimp Obama's ability to put America to work.
  200. Jim Campbell from Los Angeles, United States writes: It's going to be quite a ride. People shouldn't live with their families' futures impacted by poor management at the company they work at, the economy, Wall Street, etc. Don’t just accept what’s thrown your way. I’m not available for that and you don’t need to be either. www.LikeSoup.com
  201. Adrian Denegar from Victoria, Canada writes: The Conference Board of Canada stated in its Industrial Outlook regarding the auto parts industry:

    "From 2006 to 2008, profits will range from between $5.7 to $5.9 billion [. . .] Profit margins will be highest in the parts sector, partly because auto parts suppliers have diversified their sales away from their reliance on the Big Three towards auto manufacturers outside North America."
  202. Non Partisan I AM Canadian from Canada writes: 'How can they roll out a 35k-40k hybrid when brand new trucks are now selling for 21k. '
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    Easy: they market the savings and extra benefits of buying these hybrids...or should I say.."investing" in these hybrids.
  203. S H from Windsor, Canada writes: Welcome to the world of unfair free trade people. It will only get worse unless we change the rules. Who's at fault?... Look in the mirror! Keep buying foreign, while domestic company's export jobs and voila.....RECESSION!
  204. George Duncan from Canada writes: THE AUTO INDUSTRY AND THE RELATED ENTITIES HAVE BEEN A DOG IN CANADA FOR YEARS AND HAVE BEEN PROPPED UP PURELY FOR POLITICAL REASONS. CANADIANS DO NOT LIKE/PREFER DOMESTIC VEHICLES SO WE JUST AS WELL PUT THE AUTO INDUSTRY ETC OUT OF THEIR MISERY AS SOON AS POSSIBLE AND MOVE FORWARD.
  205. Toast And coffee from Canada writes: I would like to hear the details of why he thinks this problem is "temporary". If it really is temporary then maybe the feds should assist. However, I am very skeptical about how temporary this can be.

    If it is just temporary until Asian competitors pay the same wages, well........?
  206. J B from Canada writes: Let them burn unless your willing to produce electric cars now, 6.7L per 100km is a joke, and you want to be done that in 12 years? Too little too late. You need employment? Ok, how about we build subway's in Ottawa, Edmonton, Calgary, Vancouver, Victoria, and expand Montreal and Toronto's subway. Lots of work for lots of differently skilled people, governement funds flow into economy. AND its a major environmental shift, lets face it folks, you dont need a car to work in Toronto unless your leaving Toronto, and that makes it cheaper to live BIG TIME, believe me, my 4 months riding subways were the cheapest time in my life instead of paying for car insurence and gasoline, and repairs. I don't see why only 2 major cities in this country have subways, im aware teh other cities still have public transportation but not with the same scope and efficiency of subways. You want work, you got it.
  207. Non Partisan I AM Canadian from Canada writes: 'CANADIANS DO NOT LIKE/PREFER DOMESTIC VEHICLES SO WE JUST AS WELL PUT THE AUTO INDUSTRY ETC OUT OF THEIR MISERY AS SOON AS POSSIBLE AND MOVE FORWARD. '
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    ... to putting the glass companies out of business....and the the tire cos out of business....and then the bolt suppliers out of business...and then the restaurants in auto cities out of business...and then....and then...and then...and then...
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    The man is saying he likes China better than North America. (Is that correct?) Or, are you saying you want all the rose petals of Chinese business practice without any of those very long, and very sharp thorns?
  208. Wilf Kruggel from Canada writes: The feds better take note, any money that goes to a company with unionized employees, strikes must be banned till at such time the money is paid back in it's entirety, interest included, to the taxpayers of Canada, no strikes or job actions of any kind, end of discussion, Wilf
  209. Toast And coffee from Canada writes: Good one Wilf!
  210. Peter Wojnar from Hamilton, Canada writes:

    >>J B from Canada writes: I don't see why only 2 major cities in this country have subways, im aware teh other cities still have public transportation but not with the same scope and efficiency of subways. You want work, you got it.

    Because they are TOO expensive to build and operate.

    Wasn't it around a year ago that the TTC was already talking about mothballing the new Sheppard line due to the huge cost of operating it? That line runs at an enourmous loss apparently.

    That's your answer.
  211. Non Partisan I AM Canadian from Canada writes: 'The feds better take note, any money that goes to a company with unionized employees, strikes must be banned till at such time the money is paid back in it's entirety,'

    What about Corporate bonuses, incentives, sebaticles, and raises? Should they not be banned too? (or is this a one way thing, in your mind)
  212. S H from Windsor, Canada writes: Wilf.....does that apply to wallstreet too? or just the working poor?
  213. S H from Windsor, Canada writes: George Duncan.... putting a whole industry out to pasture is not moving forward, unless of course you are in the express unemployment line. I can hear the big sucking sound now...or is that wallstreet?
  214. S H from Windsor, Canada writes: J B..... building public transit is your answer? What's the difference? Either way, the money is coming from us, "the tax payer". 1 billion wouldn't build a subway in one city let alone the 7 you mentioned. Creating jobs is great but if the gov't creates them, we're all paying for them aren't we? We need private sector jobs, not gov't jobs!!!!
  215. Peter Wojnar from Hamilton, Canada writes:

    >>Non Partisan I AM Canadian from Canada writes: 'The feds better take note, any money that goes to a company with unionized employees, strikes must be banned till at such time the money is paid back in it's entirety,'

    >>What about Corporate bonuses, incentives, sebaticles, and raises? Should they not be banned too? (or is this a one way thing, in your mind)

    I agree.

    In addition to banning union workers from striking, union workers should also get no bonuses, raises or incentives until such a time when all the government taxpayer money is paid back.....with interest!

    Good catch Non Partisan.
  216. S H from Windsor, Canada writes: Peter Wojnar.... while they're at it. Don't allow company's to build in 3rd world country's and export here. If they wanrt to sell here, they must build here!!!!
  217. Chris Hay from Regina, SK, Canada writes: given the inability of GM/Ford/Chrysler to adapt and their insistance on producing gas guzzling vehicles of mediocre quality, NO they should not be granted further subsidies or assistance. If the Asian car manufacturers were able to forecast demand and begin producing fuel efficient and higher quality cars years ago, there is no reason that the "Big 3" domestic manufacturers couldn't have done the same. This concept of 'rewarding' business for poor decisions has to stop - be it banks, car makers or otherwise! And for those who insist it is the "union's fault" remember, it takes TWO to sign a contract. Unions negotiated a contract that however rich it may have been, was accepted by mangement. This is not so much a defence of unions, as it is an indictment of management to agreeing to such rich and unwieldly contracts in the first place (were they expecting a government to bail them out down the road?).
  218. Non Partisan I AM Canadian from Canada writes: So; you're a troll.

    ;)

    Got it.
  219. jeff russell from Canada writes: I believe we should be spending money to help out all of our industries but the money should go to Canadians, by this I mean construct more electricity production dams, tidal, wind, nuclear solar ect, make transportation more efficient for people and goods throughout the country, invest in R&D to enable them to use less inputs (ex. nat gas) and to create a cleaner process, some daycare jobs so people can go back to work right away and increase productivity, ect. These things will puit money in the pockets of those who want to work and will help Canadians pay their bills, create demand for goods, and will make us a more competitive country in the coming years.

    Alot of this money would be recouped from income taxes, gst, money going into the markets helkping businesses, selling the electricity, increased PM on oil and less pollution, and people coming back to the work force quicker after child birth.
  220. Hugh Andrew from Ottawa, Canada writes: As was said to industries at the onset of NAFTA, - those that can servive the new world order will and those that can't shouldn't be there as they are not competitive. We have given the "American" auto industry far too much. IF they can't compete, let them go. Other makers will fill the gap. As for the parts industry, it is the same thing.
  221. Peter Wojnar from Hamilton, Canada writes:

    >>S H from Windsor, Canada writes: Peter Wojnar.... while they're at it. Don't allow company's to build in 3rd world country's and export here. If they wanrt to sell here, they must build here!!!!

    People buy imported things because they cannot afford the ones made here.
  222. Bob F from Canada writes: S H from Windsor.... Wilf.....does that apply to wallstreet too? or just the working poor?

    Geography lesson. Wallstreet is in the United States of America.

    If you are referring to the "hand out" that was given to our banks in Canada.... It was not a handout .... It was an asset swap to ensure liquidity in the market. Basically the government was given an asset ( that they would earn interest on and make money) in exchange for cash of equal value.

    From what I can see this is a handout given that they are not surrendering any assets in return. Its a bad investment given the climate of the auto sector and the decreased demand for cars overall. I say no!
  223. Paul Polock from windsor, Canada writes: i would be willing to run any of those companies into the ground for about 20% of what the executives are getting. it would be very easy, anyone can do it.
  224. s c from Canada writes: Provide a 10-year low interest loan to companies that can meet two criteria:

    - unions, if they exist agree not to strike for a 10 year period; and
    - company must not pay its CEO more than 20 times the average earnings of all non-executive employees

    Bet no company would ask for money.
  225. Buddy Rich from Toronto, Canada writes: W N from United States writes, Food for thought what a bunch of wide sweep statements "This industry is the main economic driver in Ontario"
    Here is one for you; the 1-2 percentile top salary in Ontario are the economic engine of this Province...really. I think some have put all their eggs into the same basket and got too confy. Do you know that some workers (professional) have on average in the past 20 years changed twice carreers so what don't the auto sector's workers just do that, simple it's called being flexible, innovator and adaptable.
  226. Richard Keefer from Omemee, Canada writes: There seems to be a big element of misdirected schadenfreude here, as the story was about parts manufacturers, rather than the much-vilified and formerly Big-3, along with the once-big and equally despised CAW/UAW.

    However, before throwing money around, the first problem should be to establish the demand for vehicles, after subtracting easy borrowing and cheap leases driven by bizarrely-low interest rates, and then considering actual vehicle longevity as opposed to the throwaway fashion statements consumers who once thought they were wealthy thought they could afford. It could be that automotive markets still have a long way to shrink, and it could also be that parts and service will pick up some of the slack.
  227. J Kooman from Canada writes:

    s c from Canada writes: Provide a 10-year low interest loan to companies that can meet two criteria:

    - unions, if they exist agree not to strike for a 10 year period; and
    - company must not pay its CEO more than 20 times the average earnings of all non-executive employees

    Bet no company would ask for money.

    =============================================

    You are right. Warren Buffet is the CEO of an American company.

    ...
  228. Jeff Gordon from Canada writes: To the GLOBE
    A poorly written article that leaves out too much information.

    If the loans are SECURED, then they would be a good idea as the PARTS manufactures provide all the equipment makers, not just the Big 3. Equally if more public works are in the forecast they could quickly re-tool to provide part to the heavy equipment manufacturers who would see an upswing in demand.

    Both management and the unions have a role to play in the problems the Big 3 are now experiencing, and both have a role to play in the future of these firms. Unions have always balked at getting involved in some aspects of management, but then are the first to stand aside and lay blame elsewhere when things don't work out. Floor workers usually have a unique insight into issues long before the executive suite catches up.

    Lastly both Ford and GM make some great cars in their oversees divisions. As previously stated GM is doing very well in Europe but only ONE of these successful vehicles (Vauxhall Astra) is sold here as the Saturn Astra. Maybe we should consider loans to GM and Ford for them to re-tool Canadian plants to build some of these European models here. Fuel has always been more expensive over there and most of their vehicles are smaller and much more fuel efficient. Again these loans should be secured against assets, or accept royalty payments on every car sold.

    I don't live in Ontario anymore but every Canadian, in every part of this country will feel the effects of a failed Ontario manufacturing sector.
  229. CallofDuty . from Canada writes: We cannot compete with the imports. That's a simple fact. Invest in public transit, schools and hospitals and such. It keeps the money here. Improving social services would help us out of this mess.
  230. Christopher Kiely from Canada writes: W N from United States writes: People keep saying the domestic car makers keep making stuffs people don't want to buy. There is some truth to that, but it is also a misguidee perception. For the last decade, they 've been busy making big suvs that people wanted to buy. People didn't want small cars until the price of gas shot up the roof.
    ______________________________________________________

    Sure they build SUVs North American's wanted for awhile, but we're in a global economy now W N, time to look beyond your borders. Fact is very few people in China, Singapore, Russia, India, etc... are interested in buying an American car, they want European or Japanese. The Big 3 have lost the global fight for market share. They will either have to have a dramatic turn around over seas or become extinct. The latter is more likely.
  231. S H from Windsor, Canada writes: Peter Wojnar....if they did this, people would adjust. If we want to keep our standard of living, we have no choice. We cannot trade under the rules that are in place now or Canada is doomed. There will be more public sector jobs in this country than private sector jobs if this keeps up. So in the long term, we will be supporting each other with tax dollars, won't we?
  232. Yvonne Wackernagel from Woodville, Canada writes: "Winston Smith from Canada writes: It would be a sad day to see the Tories, long defenders of free enterprise and small governments, hand over taxpayer's money to auto-parts companies making products the market does not want; not to mention subsidizing millionaire executives like Frank Stronach.
    =================================================

    Having contributed substantially to the Canadian economy, I doubt Frank Stronach would be looking for a handout. HOWEVER, most of you who criticise this proposal seem to forget that OUR GOVERNMENT JUST BAILED OUT THE BANKS -whether you want to look at it that way or not; they needed the support WHICH THEY GOT.

    If we do not do SOMETHING to help some of these smaller employers, there will a lot more unemployent, which means less revenue for healthcare and the subsidy you receive in transportation, etc. I think some of you are either very unintelligent or very shortsighted.
  233. jim reed from dungannon, Canada writes: They should get their billion on the condition that they start building energy-efficient trains.
  234. pole cat from Canada writes: Wilf Kruggel has the right idea.
  235. pole cat from Canada writes: Where were all you bleeding hearts when the lumber industry took a big hit.I have alot of freinds who went west and are doing well, why cant you ppl in ontario(manufacturing) go west to.
  236. Toxic Planet from dead zone USA, Canada writes:
    "Auto-parts industry seeks $1-billion in loans"

    another fine example of corrupt to the core, out of control, greedy capitalism, is there anything in the west that isnt?
  237. John Gennaro from Toronto, Canada writes: Canada has for too long concentrated it's efforts at being an obsequient branch plant of the US Big 3, and in recent times, the Asian Big 2, rather than nuturing and protecting, from the ground up, a domestic car industry.

    Contrast with Korea, which in the last 4 decades has created, nurtured, and protected a domestic auto industry from virtually nothing.

    During the same period, Canada has followed often times myopic goals including: creating, then dismantling the auto pact, taking orders from Detroit to build often inferior and buggy designs (though this has improved in recent years), rewarding lower value toil with artificially high wages, and contributing to the distorted marketplace by various government cash dole outs.

    It's high time for a little natural selection here (and globally). With what's left of the smouldering heap of closed plants, we should be effecting thoughtful research and development legislation and investment to effect, nurture, protect, and grow next generation domestic and diversified industries. This will require a healthy re-evaluation of NAFTA and WTO issues.

    An interesting example and side effect of the distorted marketplace here in Toronto: the Pontiac Vibe, is imported* from California, yet the identical Toyota Matrix is made *domestically (less than 2 hours away). Anecdotally speaking based on a casual comparison of a few Toyota and GM dealers, the '08 Vibe was roughly $1500 cheaper more often than not vs. the '08 Matrix, in May of this year, with the same options.
  238. Sweeney Todd from Oilberta, Canada writes: Non Partisan I AM Canadian from Canada writes: Someone asked: 'Is there a big market for these cars in the US, right now? If not, then again, our domestic market just isn't big enough to make it viable. '. . . . . Yes; there is a huge market of people who are financially hurting, and feeling the pinch to help, both, the environment and the economy of their country.

    ==========================================

    Out here, in the real world, people who are "financially hurting" and "feeling the pinch" are very typically NOT the target market for big ticket items like new cars. Just because you can identify a large group of people, does not necessarily make them your customers. It doesn't even make them potential customers, unless they actually have money, or can qualify for a loan. Let us know how you make out getting vast amounts of gov't money on this side of the border, so that you can extend credit to would-be purchasers of your product in the US. I think you mean well, but you have no business sense whatsoever.
  239. Bradley Strider from Canada writes: It was depressing to read Tony from Waterloo's roundup of Harper's failings. Now that the Reformers have proven themselves lacking in fiscal discipline, it seems that there is no party in this country that will take a stand against corporate welfare and regionalist bribery.

    Oh, and to anyone proposing a reevaluation of NAFTA over this: there's no natural law out there saying that automobiles have to be made in Canada. I don't know where my car was made, and I don't give a damn anyway. If more people adopted the same attitude, maybe we taxpayers would stop being held for ransom all the time.
  240. Sweeney Todd from Oilberta, Canada writes: John Gennaro from Toronto, Canada writes: "It's high time for a little natural selection here (and globally). With what's left of the smouldering heap of closed plants, we should be effecting thoughtful research and development legislation and investment to effect, nurture, protect, and grow next generation domestic and diversified industries. This will require a healthy re-evaluation of NAFTA and WTO issues."

    ==========================================

    You do realize that it's the free trade agreement that has allowed pretty much unfettered access for Canadian autos and auto parts to be exported to the US, right? The Honda & Toyota plants in ON fall into the same catagory - if they can't ship 80 - 90% of what they make here in Canada to the US - and make a profit doing it - the plants here will close.

    I wouldn't get too carried-away trying to re-negotiate NAFTA. Ontario will be out of the frying pan, and into the fire.
  241. W N from United States writes: Buddy Rich from Toronto, Canada writes: W N from United States writes, Food for thought what a bunch of wide sweep statements "This industry is the main economic driver in Ontario" Here is one for you; the 1-2 percentile top salary in Ontario are the economic engine of this Province...really........ FYI, I am a professional worker too, I am not a union guy and don't speak for them. From your statement, you sound like in the 1-2 percentile top salary maker, well good for you, but without the 98% of the rest of us. you won't be where you are. Check your facts before you open your mouth. Do you know how many companies in Ontario do business with the domestic car makers? Do you know how many cities in Ontario depend largely on the auto industry? St. Catharines is an auto manufacturing city, Windsor is another one, then there are Oshawa, Guelph, Brampton. There are lots of suppliers around metro Toronto. Go ahead and tell all these people they can go to hell for they don't belong to the top 1-2 percentile salary range. Christopher Kiely from Canada writes:Sure they build SUVs North American's wanted for awhile, but we're in a global economy now W N, time to look beyond your borders. Fact is very few people in China, Singapore, Russia, India, etc... are interested in buying an American car,......... Fact: People in China love Buick, a GM brand Fact: people in Europe loves Opel, also a GM brand. Fact: Chevy , a GM brand, does extremely well in Latin America. Fact: GM has a much bigger market share in China than Toyota. Fact, GM has been making money outside North America. They need to get to the root cause of their problem in N.A. I've been to many parts of the world. I think you need to look beyond your borders, not me!
  242. Sue W from Canada writes: It's the same old tired game....

    January 10, 2007

    Corporate Welfare Continues to FLEECE Taxpayers

    > $18.4-billion in handouts given to businesses in 47,960 payments over 23 years.

    > Only $1.25-billion or LESS THAN 7% has been REPAID to federal government.

    > By ending the subsidy game Ottawa could reduce business tax burden.

    http://www.taxpayer.com/main/news.php?news_id=2471
  243. W N from United States writes: "Chris Hay from Regina, SK, Canada writes: given the inability of GM/Ford/Chrysler to adapt and their insistance on producing gas guzzling vehicles of mediocre quality, NO they should not be granted further subsidies or assistance. If the Asian car manufacturers were able to forecast demand and begin producing fuel efficient and higher quality cars years ago, there is no reason that the "Big 3" domestic manufacturers couldn't have done the same. "..................................................................................
    Toyota and Honda also make gas guzzlers. They just can't sell as many as the domestics. Toyota built a brand new plant to make the new gas guzzling Tundra just when gas price shot up. Do they have the foresight? They are just as greedy as the domestics and wanted to cash in on the big trucks and SUV. How much mileage do you get out of the Pilot, the highlander?
  244. S H from Windsor, Canada writes: Bob F.... I know where wallstreet is. You're missing the point Bob. I don't care where the money comes from. You can't help one and not the other. Besides, it is big business and the lack of gov't control that has caused this catastrophe. We all have a role to play in society and big business hasn't been playing their part for over 20 yrs. in North America.

    You might think that this loan is a bad investment but considering the UI we would have to pay, a billion is nothing! Especially if it helps keep tax dollars coming in while helping an industry rebuild. NO tax dollars come in from unemployed people!!! I don't like this either BOB, so we must change how business is done in the world. If all country's were like France, we'd all be better off!

    I work for a company who has downsized from over 100,000 employees to just under 18,000 in the 20 years I've worked there. The company used to have over 200,000 employees back in its heyday! So we as "employees" have done our part. The company is making alot of money but still wants concessions. My CEO made 50 million last year. So now you can see why unions keep fighting Bob!
  245. S H from Windsor, Canada writes: Bradley Strider.....you dont' give a damn where anything is made? Then you will be paying more and more in corporate welfare under the rules that exist today. Like most Canadians, you're part of the problem Brad! You better start caring or this country is doomed!
  246. Karen v from Canada writes: I say we all stop using credit cards and borrowing money for things we don't need. If we stop being such huge consumers, we won't need to rely on foreign countries as much. As well, companies and corporations will do the same and we all go back to basics and buying only those things we absolutely need. If corporation presidents stop needing luxuries, their salaries won't "need" to be so high, for one thing. I say we all work towards self-sufficiency and simpler days. How else will this huge mess be cleaned up? Set up new job training for laid off auto workers--perhaps for positions having to do with the IT world--and let the auto industry die its natural death if that's where it's going. This may sound like oversimplification but it's exactly what Iceland is doing and knowing Icelanders as I do, they will come out of this better off than the rest of all of us.
  247. S H from Windsor, Canada writes: Karen V.....I agree with you but what is happening is not natural. Textiles are gone, manufacturing is on its way! What is next? When does it end? Trade agreements have to change, we cannot compete with 3rd world country's! Everything in this world is based on the mighty dollar, all the education and technologies won't keep jobs here. The gov'ts of the world have to step in. Why do you think the gap between the rich and poor has widened. Over the last 20 years our standards have fallen in this country, only a rich few have enjoyed higher standards. When you have the richest country in the world with over 40 million people without health care, the system is broke! We need to fix it and take responsibility for our role in our community and society.
  248. Karen v from Canada writes: S H from Windsor.... How do you know what's happening isn't a natural part of Capitalism? It's never been pushed this far before. To my mind, what is happening now is the dark side of Capitalism. Perhaps things are evolving into something new and never seen before. Isn't the gap between the rich and the poor a result of plain old greed? I do agree with most of your comment. I also heartily agree with Sweeney Todd from Oilberta. I think his comment distills mine into fewer, more articulate words.
  249. Karen v from Canada writes: Oops, it's John Gennaro from Toronto I agree with! I should have kept reading!
  250. Sweeney Todd from Oilberta, Canada writes: Karen v from Canada - You and S H need to do some reading on the Great Depression. This has ALL happened before.

    Regarding Iceland - I sure hope that they're better at IT than they were at banking.
  251. Bradley Strider from Canada writes: Why should we compete with 3rd world countries in textile production? It's obvious that they can do it cheaper than we can. If the same thing applies to automobile assembly, then so be it. We should find something else to compete in. That's how trade works. It's the reason we're not all tilling our own fields and weaving our own cloth.

    And S H, apparently you work for Nortel or something. My condolences. But you're not making much sense.
  252. Karen v from Canada writes: Sweeney, this type of recession, depression has never happened before. The cause is quite different and the world situation is quite different. The result--the economic circumstances we now find ourselves in--may be similar to the Great Depression but the similarity ends there.
  253. Evan Hildreth from Ottawa, Canada writes: We are manufacturing more cars than we need, and the auto industry cannot sustain itself. It will forever need subsidies until production is trimmed back to match demand.

    Trimming back production means losing jobs. But, it costs more to employ a person making unneeded cars and parts than just their salary. Therefore, it could be cheaper just to buy off the employees for $250,000 each than to keep those people employed.
  254. Evan Hildreth from Ottawa, Canada writes: Bradley Strider: Unfortunately, we are going to run out of things to compete in. The "3rd world" is building more infrastructure and becoming more educated.
  255. S H from Windsor, Canada writes: Bradley Strider..... we can't compete with 3rd world country's, that's my point! Company's are starting to send office jobs to India and Bangladesh. Exactly what is it that we should compete in? We need jobs in all fields. If we keep all our eggs in one basket, we're in big trouble. Look at the loonie..it's tied to our only 1 strong industry...our natural resources and when thy're down and gone, so goes the dollar and our economy Brad. We need trade Brad but it needs to be fair and benefit both sides. They can do it cheaper because their standard of living is 1/10th ours. Are we supposed to regress 40 years to get these jobs back?
  256. Bradley Strider from Canada writes: More infrastructure and more education don't sound like things that should be located anywhere near the word "unfortunately". For some reason humans intuitively think that development is a zero-sum game. It doesn't work that way at all.
  257. Bradley Strider from Canada writes: Office jobs, eh? Oh no. First of all, outsourcing is not the magic bullet that it's touted as. There's a whole Wikipedia article on this that you can go and read.

    Second, you're wringing your hands about Canada putting all its eggs in the natural resources basket, when almost twice as much of our GDP comes from the services sector. We have an extremely diverse economy.

    What should we compete in? For God's sake, how should I know? That's something that individual businesses will find out, not one person. All I know is that there's still an endless multitude of services out there that need to be provided, some of which haven't been invented yet. (And no, I'm not talking about working at Timmy's.)

    Propping up inefficient industry is not beneficial to us nor them. I don't know how many more ways I can state this.
  258. FUNNYGIRL 101 from small town canada, Canada writes: These auto makers and others have a lot of nerve! They've made money hand-over-fist for decades and decades in making their fuel-guzzling suv's and trucks. They've posted record-breaking profits! Where's their "savings" ?? To ask governments for a bailout is not the answer, nor should we ever give them any !

    Its the cost of doing business - and besides - I feel most of any 1 billion dollar bailout will go to those over-paid Executives - and not investing in making the eco-friendly vehicles for the masses. Tell them to get a loan at the BANK, like the rest of business owners, and not by hitting up the taxpayers to bail them out.
  259. Washington DC from Canada writes: PEOPLE! Try actually reading something rather than spouting some uniformed emotionally driven rants. THEY ARE NOT asking for handouts. They want LOANS/lines of credit to replace the ones that the banks (which we have already loaned money to) are no longer extending to them. Like just about every business, at times the auto parts makers have to borrow money to operate. The industry in Canada has struggled lately, in no small part because the dollar rose so high so fast (oil currency) and the Harper gov did nothing to help them. Now the dollar is lower and they may have a shot at a bit of a recovery, but only if they can get the capital they need to operate.
  260. FUNNYGIRL 101 from small town canada, Canada writes: WEll Washington from DC - if the banks won't loan to them why should the taxpayers? Let them redesign loans and lines of credits where everyone else does.. the banks! The government has banked them - why should the government guarantee loans and lines of credits to the customers. If they haven't saved any money from all the money they've made in the last 50 years, then too bad! Let them sink. New businesses will take up the slack. Its time for the big automakers to wake up, and call it a day!
  261. david tarbuck from ukraine, Ukraine writes: Canada resembles Ukraine and Hungary; three food rich countries are in massive trouble precisely because of warped priorities.

    In all three investment in food for the world is lacking whilst the largest corporate welfare bums (steel, auto, forstry, etc.) scream for more handouts!

    If the USA wants to sink $25billion into those dinosaurs, let them proceed with it, but Canada? NO! Like most governments Ottawa and the provinces are already over commited to those who are in trouble from their own (mis)deeds, while neglecting opportunities for future building ideas.

    The request for one billion for parts industry should be considered only on conditions it is:(1) short definite terms (2) interest rates are/is NOT subsidies (3) obsolete no longer competitive products/methods are phased out and/or allowed to die out.

    Funny girl 101 you got it right, and most of the comments above show more grey matter than the sum totals in the administrations in Ottawa and else where.
  262. S H from Windsor, Canada writes: Bradley Strider.........Chrysler Financial looks to offshore IT departmentOctober 29th, 2008 by Bill Cawthon
    The Detroit News reports Chrysler Financial is considering a plan to outsource 85 percent of its U.S. information technology staff with most of the work going offshore. The company believes it could save about $18.9 million in the first year and a similar amount in succeeding years under a program developed with Alsbridge Inc., a [...]

    I hope the service industry has a long and bright future!!!! Can you trade a service? How much education does the service industry require by the way? Pensions????

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