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Feds to give Ford engine plant an $80M boost

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CTV.ca News Staff

Date: Wed. Sep. 3 2008 5:02 PM ET

Prime Minister Stephen Harper promised that millions in funding for a Ford Motor Company flexible engine assembly plant and research centre in Windsor, Ont. will create or sustain up to 757 jobs.

The "repayable contribution" from the federal government will be up to $80 million over five years.

It is expected Ford and other partners could spend up to $730 million over the next four years.

Harper was joined Wednesday by Industry Minister Jim Prentice at the Ford Motor Co.'s currently-closed Essex, Ont. plant for the announcement which came one day after John Deere said it was closing its plant in Welland, Ont., putting 800 people out of work.

The funding promise came on the eve of an expected election call but Harper denied that it, and a series of other funding announcements, had anything to do with an election campaign.

There were also reports that the feds were planning to announce funding for the GM plant in St. Catharines, Ont.

"As the government our job is to set the conditions for the private sector to succeed," Prentice said in Windsor.

Ontario's manufacturing industry is reeling in response to the struggling U.S. economy as well as a consumer shift away from gas-guzzling vehicles towards more fuel-efficient cars.

Nationally, 88,000 manufacturing jobs have been lost in the past year.

Canadian Auto Workers Union president Buzz Hargrove reacted angrily to news of the bailout, saying it was nothing more than a pre-election dole-out designed to try and attract votes.

He said he was "furious" over the timing and suggested Harper and his government have ignored the manufacturing sector but "now they're calling an election and all of a sudden they want to be seen to be doing something."

"One can't help but be cynical," Hargrove added, "but we'll take anything we can get right now to save one job."

The Liberals also lashed out at the Tories saying the move was "too little, too late."

"This Conservative government did nothing in two and a half years to help the auto sector reinvest in capital and innovation," said a Liberal Party press release.

"...Investing at the eleventh hour, after a plant has announced it will close, is just not good enough for the Canadian people."

The statement says the Conservatives are only making the announcement to shore up support in a vulnerable riding.

However, Windsor Mayor Eddie Francis greeted the announcement with optimism.

"Call it whatever you want," Francis said. "This is a plant that's re-opening and if people want to call that politics, that's fine."

Liberal Leader Stephane Dion has been doing his own pre-writ campaigning. He was expected on Wednesday to announce provisions in his "Green Shift" carbon tax plan that would lessen the impact on some industries.

With files from The Canadian Press

Comments are now closed for this story

eskiefan
said

It's going to be so much fun watching all those people who criticized the Conservatives for not helping the manufacturing sector, now start criticizing them for doing so.


W Barbour
said

What strikes me is not so much what they're doing as when they are doing it. Now they're the good guys. Maybe we should vote for them.
Yeah, right. Buying votes has never been so obvious.


Jeff S.
said

It's not the Government's job to bail out struggling companies in a free market economy. I empathize with the loss of Ontario's manufacturing jobs, but supply and demand is how the market works. There is nothing we can do to change the situation in the U.S.

On the other hand, this is a smart move by a smart PM. I have no doubt that he just secured a Conservative win in this riding. Politicians do this all the time... Nothing new in the 21st Century.


bruno
said

They did nothing for this sector until now when an election is about to be called. It makes one wonder how dedicated they are to it and whether they would do the same if they did get a majority. Isn't this the party that criticised McGuinty for doing what they themselves are now doing?


Vahan
said

This is not government helping the manufacturing sector; it is government encouraging more bad business decisions. Ford was as stupid as GM and Chrysler to concentrate on huge guzzlers while smarter manufacturers were going hybrid. This is a pat on the back for being stupid. Good work. Why encourage innovation like electric cars made by Canadian manufacturers when you can dump money into the trough? Belly up boys, dinner is served.


MagnuS
said

Another "loan". Soon more plants will be closing and the CEO of Ford will get his million dollar bonus... This is another joke.


EyeOnTheSky
said

Where's the money for the all-Canadian Zenn electric car?
So much for not "picking winners and losers".
Ford's current CEO was paid $39 million in his first four month period. When I saw that I had the urge to send the company some money to help out. Thanks for beating me to it, Stephen and company!





boomer
said

Hey, I think it's a good shot in the arm and very much needed but don't stop there. How about investing in something that will make the engine use less gas or maybe put some money into wind farms, solar farms, eletric assist bicycle plants etc....


Daniel
said

I find it interesting how un-capitalist the Conservative Party is. The say they are different than the Liberals and the NDP but subsidizing a company that is floundering is socialistic. Their social policies may be different than the Liberals' but their economic policies are just the same.



RRor
said

80 mill for 750 jobs.
Gee, could there be an election coming or is the PM just going to keep on propping up failures with our cash?
I guess it's the union's fault that Ford won't invest in its own company. That should tell you something.


I'm addicted to GAS!
said

Oh, great. Throw some money to Ford. Where are they getting the $80 million?
Wonderful news. How about giving $80 million to Canadians paying excessive gas prices.....?


Den
said

It's going to be fun watching all those people who criticized the Liberals for requesting a helping hand for the manufacturing industry, now start praising the Conservatives for doing exactly that - on the cusp of an election, two years too late.


Rootin for Harper!
said

Back in March or April the Libs/NDP asked why the government was not doing more for manufacturing in Ontario. Now they will say this is just vote buying... Harper is no dummy. He knows any criticism of this decision will only hoist the opposition on their own petard! Too funny!


Shoe
said

If it wasn't for the coming Election call, Harper would never give them any money...Now my tax dollars are being used to buy votes, and subsidize an industry that brought this on themselves. I live in Ontario, and fully disagree with any money being spent on the auto sector. What will Harper do next - throw money at the oil sector to help them build new refineries???


TVic
said

I seem to recall that not too long ago our friend Harper argued that the feds didn't provide money for such micro stuff - that their mandate was to work at the "macro level". Well, what's changed?? Do I smell an election looming and votes needed in Ontario??



Ron Speakman
said

I'm a Conservative but this scares me as I know it can be a slippery slope...There are plenty of other troubled businesses out there that could use a bail-out.


Pugfire
said

This is an "ADD COMMENTS" space so I say,

Add John Deere.

There's an election coming so we must cover all the bases, especially those in Ontario.


Kasey W
said

Mr. Harper introduces the Industry Minister Jim Prentice who says, "I am glad to be here with yourself," meaning Harper. Are you kidding me? What kind of english is that?


sick of it all
said

...after years and years of their high and mighty, holier than thou stance about the Liberals dumping money just before an election...

Yeah well, I can be bought too... Give me half a million and I'll vote for their slimy politics for life...


Craig in Burnaby
said

So it's bad not to help the auto industry and then its bad to help the auto industry.. The Liberals look more and more pathetic every day...


JJ
said

I am not sure that this is a good expenditure of tax dollars but I guess that as a likely election looms, it is money well spent in Ontario!!!


James in New Brunswick
said

It should not be up to the Government to invest in upgrading manufacturing facilities to match current and foreseeable future market trends; it is the manufacturer's responsibility. They didn't do it so they were stuck with a bunch of stuff that wouldn't sell. How is that the Federal government's fault?

Yes, the Government (Fed and Ontario)could be spending money to support the New Economy by investing in or at least allowing technology like electric cars (limited as they currently are) but then they'd be competing with the current auto manufacturers who have invested so much in Ontario. You don't bite the hand that feeds you.....


Good For Windsor's Bleeding Economy
said

Finally some help for Windsor's bleeding economy and a good move to invest in fuel efficient, four cylinder engines. I really don't know what Harper is thinking. Clearly it's an election gimmick but there is no way people are going to vote for him in Windsor - a city that hasn't elected a Conservative MP in over 50 years.


time for a change
said

This one must be embarassing for the Tory supporters. They railed against the Liberals for pre-election goodies and they railed against the Ontario Liberals for giving money to the auto manufacturers. They said they would never act like drunken Liberals and now this. How embarassing and how can anything Harper says be believed?


Les P
said

How about criticizing them for going back on their word that they wouldn't throw taxpayers' money away or bail out specific companies or sectors?
Oh, I forgot, it's election time where promises don't mean jack!


R D
said

To all you young guys who are probably witnessing for the first time "Vote Buying". Welcome to my world. This has been going on since Confederation and even before that. Some of you may remember, it was "PINK FLOYD" in Bob Rae's Ont. gov. who introduced Ontario Savings Bonds, like Canada Savings Bonds. In a few weeks, they raised $2. billion. Then when they called an election, guess how much they promised in the campaign. New bridges, road repairs & upgrades, better health care, millions more for education and on and on and on. You guessed right. $2 billion. So, let's not hear anything out of Bob Rae on this one. Or McGuinty. And to all who think this is a tax giveaway, read the 2nd paragraph again. It is a "REPAYABLE CONTRIBUTION".


Jim
said

hmm...bailing out an automotive company that is hurting because it refuses to see that the world is changing and wants to keep building big gas sucking vehicles. New laws to protect the music industry because it can't adapt to the fact that the internet changes their business model.

All I see is a government that is giving my tax dollars to companies I already choose not to support by not buying their products. Manufacturing sector job loss aside, these companies are hurting because we don't want the same garbage they keep spewing. These companies count on the fact that our government will bail them out to save the jobs.


kevin
said

hey its 80million or dion . i'll pay the 80 million!!!!!!!!!!!!!!!!!!!!!1


George
said

"He was expected on Wednesday to announce provisions in his "Green Shift" carbon tax plan that would lessen the impact on some industries."

Yup, He'll lesen the impact on some industries and shift more green out of my wallet.


A welcomed boost for Windsors economy !
said

Prime Minister Harper did a good thing in providing some incentives to get the Ford engine plant up and running. This way the Feds will have less unemployment to dish out, workers will be productive, pay taxes, purchases goods and contribute to sales taxes rather than be a drain on the system. Best of all they will be gainfully employed and have happy families. WIndsor can hold its head high with dignity as their citizens get back to work.

Good on Harper.




Steve the Pundit
said

Harper was criticized for appearing to do nothing when auto plants closed, now he's being criticized for his motivation.

Allegations of crass political opportunism need to be set aside, and the discussion SHOULD be around is this the right thing to do for the manufacturing sector to protect (or encourage) employment. New technology or future thinking products need to be encouraged; if that's what this is, the naysayers may kindly hold their tongues.




Closely Watching
said

All this to try and Buy Ontario votes after Flim Flam Flaherty already told the world Not to invest in Ontario. Harper just can't keep his word on any promise whether it be the election timing law, the Atlantic Accord, or Income Trusts. Harper is a Liar and can't be trusted.


L. Klassen
said

I do not agree with ANY private sector Co. being "bailed out" with (my) our money, it's John Q public dollars that puts ALL the money into Gov't. hands, they have no right to squander it like that. If Gov't. wants unload some of their cash, I'll gladly give them my bank account #, (which they probably already know)so they can direct-deposit to me! Get real Harper, feed the poor, etc. first !!


GP
said

What a completely absurd election ploy.

Why are my tax dollars going to support a company's bottom line because they are too inept to compete in the market place...how completely absurd.

Why not just take the $80 million divide it by the 800 people ($100,000 each) and send them to school to re-educate or as a pension to retire. The taxpayer will get far more out of this approach.

I just hate election politics…all the parties do it…it’s just a ploy to buy votes.


michael reilley
said

people are giving Ford a bad rap...its cars now are great! The Focus and Fusion are two huge successes as are their European cousins...

people are right about Ford management and marketing vision, though....this is/was the big problem plus previous crappy cars...takes a while to gain back confidence...but still good products NOW... strategy.


DG
said

"One can't help but be cynical," indeed! Harper planned to unveil this one during an election campaign just like last time when he separated his announcements in week intervals. But, Dion never pulled the plug (months have passed) so it seams too late.


rosie
said

This is good for the families in Essex and around windsor.They have been hard hit by manufacturing losses.That said,a couple of points;when they open the plant are they going to pay ridiculously high wages or competitive wages,say 15 to 20 an hr.Also ,if they haven't elected a conservative in 50 years,then how can they blame them for their woes.I vote conservative and loaning Ford this money seems politically foolish as Ontario is mostly Liberal.Damned if they do,damned if they don't I guess.


Rober in MOntreal
said

Corporate welfare pure and simple. I am sorry these workers might lose their jobs but its up to Ford not Canadian taxpayers to see to their business. Let your union bail out Ford. Why should Canadians pay to keep you working? That's your responsibility.


George
said

This money is coming from the previously announced Automotive Innovations Fund. How innovative is it to restart an out of date plant?
One more example of a government that is good at announcements, but weak on implementation.
Besides it's election time, so fixed date laws can be broken, budgeted funds can be reassigned and hollow promises can be made, all in the name of the quest for power.


Malcolm
said

I'm a conservative but I have to disagree with Jim Prentice. The government's role is not to make the private sector succeed, the government's role is to stay out of the private sector so it can succeed or fail. This is fundamental to the overall success of the free market. It will do no good to take money from one industry to subsidize or bail out another.


John
said

Put the money into health care and let business look after itself!


RCR from Ontario
said

Please all you Liberal and NDP hacks, give me a break. The NDP will never have to opportunity to help the manufacturing industry, and the Liberals always bought votes and by the way, are still doing so here in Ontario anyway.. Buzz Hargrove is a joke as well. Three industries have moved from our area strictly because of the CAW wanting more and more each year.. So if Mr Harper sees fit to help the auto industry, let's be happy at least 750 jobs might be saved. The Liberals in Ontario are responsible for the loss of over 12000 manufacturing jobs in the last couple of years. Go Stephen Go..


B. Lang
said

It's about time this Government does something positive in Ontario. Lets's cross our fingers and hope Ontario mainly Oshawa/Whitby do something positive for Canada by not re-electing Jim Flarhety the man that originally didn't want to help this sector out and has nothing nice to say about this province and who was noticeably absent at today's announcement.


BM
said

Today should be a day of Celebration in Windsor and Assex County after the announcement of reopening and create 757 jobs. But Buzz Hargrove instead of being happy for Canadian Auto Workers he still criticizes. I believe he was the big problem for the Auto Workers because you don't do business with the government throwing rocks and dirt at them. I strongly believe that he was the one who hurt the Auto workers the most with his big mouth. I'm glad that he is retired and have been replaced so he doesn't hurt the workers again. The Liberals where in power for 13 years and did nothing for the Auto Industry specialy in Windsor. Windsor have been a NDP HOLD for ever. The Auto workers supported NDP financialy & voted for them what they done for the Auto Workers? "0" but they still want their vote. They don't diserve one vote from the Auto workers. NDP just talks and criticizes but no action. Dion still is playing with his Green Shift. He just trying to manapulate Canadians to make them believe they are getting few dollars back after pay taxes through the nose all year long. I'm tired of Dion "Liberal Leader Flip-Flop. The more he criticizes Mr. Harper the more Canadians hate Dion. BUZZ OFF Dion get a job!


Anna
said

Harper was always against giving money to Auto firms. This money was put in the budget in March, and it took this long to do it. election coming, vote buying


Les P
said

Why don't they open it as a non union shop, pay the workers 15 bucks or so an hour, which is hard to find these days and actually make the company profitable so it can continue in the future to provide Canadian goods and Canadian employment.
Keep Buzz and de boys out of it.


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