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Windsor closing puts more heat on Ottawa

GREG KEENAN

Globe and Mail Update

Latest comment posted at 2:15 PM EDT 11/02/08

Another 600 out of work as parts maker Nemak shuts down ...Read the full article

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  1. Globe Insider subscriber content
    Howard Beale from Canada writes: About a week ago we had an article that told us the weak US dollar was leading to a resurgence in the American manufacturing sector. This article tells us that the high Canadian dollar is hurting the Canadian manufacturing sector.

    Yet our dollar is at about par with the USD. Therefore it seems to follow that there are factors, other than the value of the dollar, which are causing Canadian manufacturers to fail while American manufacturers are not. Does anyone seriously think that a government subsidy will solve this problem?
  2. ryan jensen from Canada writes: For years i've been reading, watching, listening to Buzz Hargrove and his suggestion that the government(s) need to provide assistance.

    You can't force people to buy cars. If people don't want to buy a Ford/GM/Chrysler than thats the way it is. No amount of government intervention will change that fact, except of course subsidizing these companies so their product becomes cheaper. Once that path is excercised the manufacturers lose interest in creating a competitive product, which results in poor quality which results in people not buying the products, AGAIN.

    We've been there and done that. It is very much the reason why we are where we are concerning the big three. Government assistance to maintain a company is almost always a detriment, even to the company itself.

    Here's an idea Buzz. The government should pass legislation demanding that all manufacturers provide high quality, competitively priced products.
  3. David Simon from Canada writes: If the Ontario government were to eleiminate its health care tax, money it doesn't need, it would help manufacturers labour costs.
  4. Vote NDP in the next federal/provincial election. from Toronto, Canada writes: These closures along with others is a cry for help from Queens Park and Ottawa. This isn't the companies fault that they're in trouble because they didn't influence energy prices, CDN dollar value etc.... as they wouldn't make them unfavourable for them to compete. For example of the CDN dollar's value is getting higher, this isn't the companies fault. It's the market's fault for doing this to our manufacturers etc.....

    These companies have been providing jobs and hope for Canadians for decades and we need them more than ever. They provide high paying, skilled jobs and help societies function well. If we don't support our manufacturers, exporters etc... then how will Canada function as a well-off society.
  5. Don Portz from Trochu AB, Canada writes: We would all like to be able to blame ONE factor which has created aproblem in the financial world and be correct. Unfortunately it doesnt happen that way. The US is probably or will be in a recession.. That reduces our sales, our revenue, our jobs, our economy. The pricing of our commodities that we sell no longer become competitive due to; our dollar, our cost of materials, our labour rates (as compared to our competitors and finally but not last to international competition both from within and outside to our personal decisions. Govt. intervention does not fix the problem. If you do not believe me read the book Collases Canadian Failures. I am in there.
  6. Michael Chew from Canada writes: Canadian manufacturers have had a number of years to operate with a low Canadian dollar. During those years, our manufacturing sector has been subsidized and protected by the federal and provincial governments.

    Eventually we have to face the reality of a rising currency and changing world economy. Rather than continue to subsidize these manufacturing jobs, we should be looking to retrain people in areas (service sector etc) were we can establish/maintain a competitive position globally.

    Are we just throwing good money after bad here?
  7. Franco TP OK Jazz from Canada writes: "The Canadian Automotive Partnership Council (CAPC)"

    Partnership. Noun. 1) Focus-grouped weasel word, used in the label of a vacuous, non-binding endeavour that purposefully excludes the clients and buyers upon which the partnership is to be unleashed. 2) a Rube Goldberg’s contraption designed to suck massive amounts of other people's money, usually tax dollars.

    If tax dollars are to be spent, it should be to ease autoworkers out of their car and oil dependence, from Windsor to Oshawa. The pain of withdrawal cannot be avoided.
  8. J G from Canada writes: The first thing that has to happen is the CAW and manufacturers open bargaining now to remove uncertainty. The let's see what else is needed. Unless the CAW gets real most manufacturing will go to US were total labour costs are now $55 / hour vs $75 in Canada. The next Impala has gone to the US so the dollar at par is NOT the issue. Oshawa can not live on the Camaro and without more product there being announced quickly Oshawa is in big trouble. And as to more imports to say South Korea.... get real. What car made by Ford, Chrysler, GM in Canada would be of interest to South Koreans or the Japanese etc? The smallest engine made in Canada is 3.5 litres...duh.
  9. S H from Windsor, Canada writes: J G......concessions certainly have to take place but you've stated one thing that I have been posting for months

    No matter how much technology and investment we do as a nation, through funding or handouts. Corporations will always take there business to the cheapest place. GM Oshawa has the #1 plant for efficiency and quality and Chrysler's minivan plant (Windsor) is #2. These plants are still producing...right now! but they will move to the US,China,India or Mexico for cheaper labour.
  10. Get2 work from Canada writes: Michael Chew I think you have it wrong.

    For many years, it was the manufacturing sector that subsidized the government. Not the other way around. Autoworkers give $400 to $700 per week in income tax to feds/provs.

    Personally, with that level of taxation I don't think it is unfair to ask for some incentive money back in return.

    What the heck is the role of government anyways, to take, but not to assist?
  11. S H from Windsor, Canada writes: Get2work......actually that is corporations role now!...to take and not give. Welcome to the new greedy world of globalization....because afterall, only the amount of money coming in, matters! It's only gonna get worse buddy!

    Life is cyclical....back in the 1920's, company's horded the money, then a recession hit...unions were started for equality, now it is starting all over again! A perfect world it is not!

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