Liberals want automakers to call Ontario home

TORONTO, (Feb. 10, 2004) — The Ontario Liberal government is planning to free up million of dollars in order to attract new auto assembly work in Ontario, the province’s inister of economic development and trade told the Canadian Press.

Noting that a new auto plant hasn’t opened in the province for years, Joseph Cordiano said the government plans to make “strategic investments” that will move beyond simply marketing the province as an ideal place to do business, and instead compete with U.S. jurisdictions offering auto makers hundreds of millions of dollars in subsidies.

Cordiano wouldn’t commit to a dollar amount, but told CP in an interview his government wants to “leverage dollars … to make investments in key strategic areas.” He said an announcement would come in the near future, adding the assistance wouldn’t come in the form of straight subsidies but instead would involve research and training dollars.

Last year, the former Conservative government along with the federal government earmarked $65 million in aid to keep Navistar International’s truck assembly plant open in Chatham, Ont. Navistar had planned to close the plant in July 2003 after failing to achieve concessions with the Canadian Auto Workers union. While a last-ditch deal with CAW found $47.7 in savings, Navistar said it would still need government assistance to match the $63.1 million it would save each year by producing trucks in Escobedo, Mexico.

Also, a potential $1-billion manufacturing site for Ford in Oakville, Ont. appears to be contingent on government aid.

The last new assembly plant built in Canada was Honda’s second Alliston, Ont. plant, built in 1998. Plans for a new DaimlerChrysler factory in Windsor, Ont. were scrapped early last year, when the automaker cited poor market conditions.

Trucking would be the primary transport mode that would benefit from additional automotive assembly in Ontario. Auto parts hauling is an integral part of the warehousing-assembly-line production process, making up a significant portion of just-in-time, cross- border freight.

— from Canadian Press