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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
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I applaud the budget, even though Health Care and education may stay unscathed. Sadly this cannot last and I worry to later this year where cuts will become enviable. If anything, this provides the Wildrose Alliance plenty of ammo when an election is called.


Comments are now closed for this story
eskiefan
said
W Barbour
said
Yeah, right. Buying votes has never been so obvious.
Jeff S.
said
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
Vahan
said
MagnuS
said
EyeOnTheSky
said
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
Daniel
said
RRor
said
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
Wonderful news. How about giving $80 million to Canadians paying excessive gas prices.....?
Den
said
Rootin for Harper!
said
Shoe
said
TVic
said
Ron Speakman
said
Pugfire
said
Add John Deere.
There's an election coming so we must cover all the bases, especially those in Ontario.
Kasey W
said
sick of it all
said
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
JJ
said
James in New Brunswick
said
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
time for a change
said
Les P
said
Oh, I forgot, it's election time where promises don't mean jack!
R D
said
Jim
said
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
George
said
Yup, He'll lesen the impact on some industries and shift more green out of my wallet.
A welcomed boost for Windsors economy !
said
Good on Harper.
Steve the Pundit
said
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
L. Klassen
said
GP
said
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 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
rosie
said
Rober in MOntreal
said
George
said
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
John
said
RCR from Ontario
said
B. Lang
said
BM
said
Anna
said
Les P
said
Keep Buzz and de boys out of it.