Dragon

http://www.thestar.com/article/554388

Ontario would lose 517,000 jobs within five years if the Big Three automakers went out of business, according to a new provincial report obtained by the Star.

The review, prepared for the Ministry of Economic Development and to be released today, warns the collapse of General Motors, Ford and Chrysler would send lasting shock waves through the economy.

If auto output by U.S.-based manufacturers in Canada were cut in half, at least 157,000 jobs would be lost right away, 141,000 of them in Ontario. By 2014, job losses would rise to 296,000 nationally, including 269,000 here.

If production were to cease completely, 323,000 jobs would be lost immediately in Canada, including 281,800 in this province, rising to 582,000 nationally and 517,000 in Ontario by 2014.

The Ontario Manufacturing Council, an arm's-length provincial government panel, commissioned the 11-page report, which was prepared by the Centre for Spatial Economics. The report paints a gloomy picture if governments at Queen's Park, in Ottawa, and in Washington do not bail out the automakers.

"The depreciation of the dollar, lower interest rates, and lower production costs eventually help the economy to partially recover (over the following five years, 2015 to 2019) but the loss of the Detroit Three leaves a permanent dent in Canada's economy in terms of jobs and output," the report says.

"For any Canadians who feel that the auto industry is expendable to our economy, this report is a wake-up call," Economic Development Minister Michael Bryant said in an interview yesterday.

"This report suggests that even under a scenario where half the auto sector is lost, our economy (in Ontario) basically craters and brings the whole rest of the (Canadian) economy with it," Bryant said.

The damage would extend well beyond the auto and related parts industries to housing and a broad range of consumer spending, said Jayson Myers, an economist who is president of Canadian Manufacturers and Exporters.

Myers is a co-chair of the manufacturing council with Jim Stanford, economist for the Canadian Auto Workers union.

"We were surprised how big the impact is. ... It shows the importance of ensuring we maintain production here."

The impact on citizens would be huge, Bryant predicted.

"If the auto industry is somehow allowed to part (from) our economy, it's the equivalent of a nuclear winter with lasting effects ... and would require enormous cuts to public services plus massive deficits every year."

North American automobile demand is already down to 11 million vehicles from a previous 19 million.

"Let's hope that doesn't last long," said Myers. "I'm pretty certain we will see demand rebound, but certainly it won't rebound to 19 million units."

Because automakers have been offering plenty of sales incentives and rebates in the past few years, which eat into future sales, "it's not going to be easy" to get demand up given the economic crunch facing consumers, Myers said.

Nor could Japanese-based automakers like Toyota and Honda, which already build cars and trucks in Ontario, be expected to fill the void left by GM, Ford and Chrysler.

"The economic impacts estimated by this analysis are likely to understate the true economic impact for several reasons, despite the possibility that foreign vehicle producers could expand production in Canada," the report states.

First, "a permanent contraction of the motor vehicle industry would negatively impact the U.S. and, indeed, the global economy, reducing the demand for Canadian exports from all industries."

That would depress prices of commodities such as oil and minerals, hurting resource-rich provinces like Alberta and Saskatchewan.

Second, the bankruptcy of any of the Big Three automakers might have serious implications for their pension funds and retirees' incomes.

Third, the study suggests "more than 80 per cent of the parts industry would vanish in the event of the failure of all three Detroit companies," which would temporarily disrupt foreign automakers' production in North America.

A subsequent housing slump would cast a pall over construction jobs as well as hurt the retail, insurance, real estate and financial services sectors, the report said.

Bryant said it underscores the necessity of keeping the Big Three in business.

"We have to mitigate the impact as much as possible."

The study comes as Ottawa and Queen's Park are preparing a $3.4 billion (Cdn.) emergency aid package if Washington comes through with a $14 billion (U.S.) rescue.

The U.S. Senate last week rejected a $14 billion bailout, but President George W. Bush is expected to resurrect it as early as this week.

In Canada, both levels of government are still determining how much money Ottawa and Queen's Park would each contribute.

Both Prime Minister Stephen Harper and Premier Dalton McGuinty have been in constant contact and Ottawa is talking with the White House to track the status of the U.S. bailout, Bryant said.

In the wake of Harper's offer of help for automakers, Alberta Premier Ed Stelmach yesterday urged assistance for his province as well.

Stelmach asked Ottawa to match the $2 billion Alberta is spending on carbon capture and storage technology to fight climate change, saying it would generate tax revenue and create manufacturing jobs across the country.

at first i liked the idea of arriving in a Volt mule as good publicity. but since its still in testing, there's still a higher chance it could breakdown then say going in a Malibu hybrid. If a breakdown did happen, the media would make a huge deal about it, which isn't what GM needs now

Anybody know, or know where I can find, how many of the cars sold by the Asian automakers in North America were made here and how many were imported from Asia?

dumb, f@#king dumb.

I don't care about company policies, flying in on separate private jets was a horrible PR move. If they can't even figure THAT out, I'm seriously starting to wonder if a loan would really help afterall

The CEOs of Nissan, Honda, Toyota and BMW aren't taking private jets to ask Congress for billions in bailout money. Are they asking for a bailout from their governments? I dont know, but they're not trying to get your tax dollars like the domestics are, thats why the domestics are the story.

if their suppliers went under cause GM went under, you'd be damned sure they'd come crawling, asking for help

http://www.theglobeandmail.com/servlet/sto...y/National/home

WINNIPEG AND TORONTO — Federal Industry Minister Tony Clement said Friday he was investigating the feasibility of a joint Canada-U.S. bailout of the auto industry.

“That's the $64 question, or something slightly higher than $64,” he said during a Conservative Party policy convention in Winnipeg.

His comments came amid brewing fears that U.S. president-elect Barack Obama will force the Detroit Three auto makers to repatriate jobs by pulling production out of Canada and Mexico in return for American financial aid.

Mr. Clement said he was looking at setting up “direct information-gathering meetings in both Detroit and Washington, D.C., in the upcoming few days” to probe whether a joint bailout would work.

Workers install rearview mirrors onto the doors at the General Motors Canada assembly line in the Oshawa Truck Assembly Plant. The plant's 3,500 workers produce Chevrolet Silverados, GMC Sierras and GMC Sierra Denalis.

Enlarge Image

Workers install rearview mirrors onto the doors at the General Motors Canada assembly line in the Oshawa Truck Assembly Plant. The plant's 3,500 workers produce Chevrolet Silverados, GMC Sierras and GMC Sierra Denalis. (Norm Betts/For The Globe and Mail)

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The Globe and Mail

“One of the things I want to do in my information gathering is to see how viable that theory is because people talk about … the need to have an integrated solution,” Mr. Clement said. “From a theoretical point of view that makes sense, but how viable is it? When you drill down on that, what exactly does that mean?” he said.

The Harper government is coming under mounting pressure to provide financial support to the Canadian auto sector, because every other region that produces cars and trucks, including the United States, the European Union and Australia, is putting up billions of dollars to get the industry back on a sound footing.

Mr. Clement said there appears to be growing agreement on the conditions of assistance to the Detroit-based auto sector and its Canadian subsidiaries.

“There is certainly what I am observing is a consensus of views both in the government of Canada and in the Ontario government and also from what president-elect Obama has been stating … it has to be about long-term solutions, not short-term cash infusions,” he said.

The heads of the Canadian subsidiaries of the Detroit Three made their case for financing directly to Ontario Premier Dalton McGuinty Friday during a one-hour meeting at the provincial legislature.

The executives did not attach a dollar figure to their request, Economic Development Minister Michael Bryant told reporters following the meeting. But he made it clear that the province's taxpayers will not tolerate a bailout of the sector and that any financing will come with strings attached.

“Governments are not the bank of last resort,” Mr. Bryant said.

Reid Bigland, president of Chrysler Canada Inc., said that both the federal and Ontario governments need to step in because the auto industry is such a significant player in the Canadian economy.

“I think [the Premier] fully understands the predicament we're in,” he said.

Mr. Bigland, the only executive who talked to reporters after the meeting, refused to say what kind of assistance his company, Ford Motor Company of Canada and General Motors of Canada Ltd. are seeking.

The presidents of Honda Canada Inc. and Toyota Canada Inc. were also at the meeting. Mr. Bryant stressed that those companies are not facing a liquidity crisis but wanted to ensure that any aid provided to the Detroit Three does not leave Honda and Toyota at a competitive disadvantage.

Mr. McGuinty said his government won't provide auto companies with any assistance unless they guarantee that they will maintain operations and jobs in the province.

“We are running a $500-million deficit [and] revenues are shrinking,” he said Friday before the meeting. “If we are going to come to the table in a way that is meaningful to the sector..., they're going to have to demonstrate to us that that somehow serves the greater public interest.”

Mr. Bryant said the fact that the fact that all the executives met with him and Mr. McGuinty attests to the urgency of the situation. But no decisions were made, other than to keep talking and monitor actions being taken by the U.S. government to bail out Detroit.

Asked about whether a speedy package is necessary, Mr. Clement said it looks like the U.S. is running into stumbling blocks in assembling its auto package –suggesting it may take longer for the American government to put forward aid.

He declined to say how soon the Harper government might cobble together aid for the auto industry.

“The worst thing to do is to make a quick decision that is the wrong decision.”

The industry minister declined to say whether Canada could afford to see the Big Three automakers go bankrupt.

“I think the last thing Canadians need from a government minister is to run around with our hair on fire.”

Mr. Clement said the auto sector will need to be drastically transformed as a result of deliberations currently underway.

“That means some things that are being done now won't be done in the future and other things that we can only barely contemplate now are going to be the driver, so to speak, of new jobs, new opportunity in the auto sector of the future.”

http://www.crash.net/motorsport/wtcc/news/...challenger.html

Chevrolet has given the first glimpse of the car it will use for the 2009 World Touring Car Championship season.

Having used the Lacetti since moving into the WTCC, the manufacturer will switch the all-new Cruze for the 2009, with the car being based on the new model recently premiered at the Paris Motor Show.

Testing of the new race car – which is the first to start Chevrolet's new design language in Europe – has already started and is on schedule, and will continue throughout the remainder of the current season and the coming winter with the team then debuting the car in the first round of the 2009 campaign at Curitiba.

The Cruze will be driven by Rob Huff, Alain Menu and Nicola Larini with the trio all having re-signed for next year while RML will once again run the cars.

“The new Cruze will be the next milestone in Chevrolet Europe's motorsports history,” Chevrolet motorsport chief Eric Neve said. “So far, we have achieved every goal we set in 2005, step by step: challenge the competition, score points, prove we can win and then become regular frontrunners against competition with an established motorsports resume.

“With the Cruze, we will put the bar even higher and firmly aim at winning the World Championship. Chevrolet's unique ‘trump card' is having worked with the same team, engineers and drivers for the past four seasons, with the success we all know. To be able to do this again with the Cruze will only help to increase our chances of achieving our goals.”

Wayne Brannon, executive director for Chevrolet Europe, said he hoped that the new Cruze would prove to be a success on track and on the roads as the company continues to try and improve its record on European shores.

“Chevrolet has motorsport is deeply embedded in our DNA,” he said. “With the new Cruze World Touring Car, Chevrolet continues to embrace its long tradition of winning on and off the track. In the past four seasons, Chevrolet had distinguished itself in racing with an increasing number of victories, not so different from the record sales growth which has developed in Europe. Again this year, sales are up by 23 percent in the first six months, and we are very proud that customers are choosing us in record numbers.

“For our European dealers, the WTCC has been an extremely useful communications tool, and they look forward to the next season with the Cruze. With the Cruze, we again look to emphasize the synergy between product and motorsports, and the WTCC is the best possible platform to achieve this. The championship's slogan is ‘Real Cars, Real Racing', and that fits nicely with our philosophy to provide real cars for real lives, with expressive design, world class quality/reliability and an impressive list of standard features and content, all at an affordable price.”

Wow... I learned a few things.

However, I am still unsure about this:

why would Mercedes aspire to that?

why/how would they utilize that?

same MSRP + lower cost from platform sharing = more profit

The mkV still seems so fresh...

This makes me feel old, to see the car generations coming so fast. Anybody else feeling like time is speeding up?

totally. must be a Toronto thing haha

Toyota’s plug-in Prius, still in early testing, will aim for a range of about 10 miles before tapping into its gasoline engine.

10mi seems pretty useless

oh the irony. the same company that got a massive chunk of money from the Japanesse government to develop the Prius is bitching about the government supporting GM

all the more generation isn't gonna do much if our outdated power grid can't hold up to the expected increase in demand (not just from plug-ins) over the next 10 years

I think GM has designed it to occasionally start the engine to make sure there aren't problems with prolonged down-time.

the other problem with prolonged non-use would the gas itself. after a year or 2 the gas will be crap, depending on how much, or even if, any stabilizer was put in

if plug-in's become popular, and given general electricity demand forecast to grow, I hope the power grid is getting a big upgrade soon, because there could be some major problems in the near future

looks great.

I wasn't sold on the look in last week pics but in these I think I like it better then the concept.

definitely an option for our next car

for once he's got a point, at least in regards to Harper trying to buy votes. He's been shelling out billions in promises since June to prepare for the coming election, and not just to the auto sector

Which just goes to show Harper is as bad as the Liberals who he scolded before the last election for doing the same thing

holy alphabet soup batman

The LX cars could use a restyling and weight shaving, so as to get more fuel efficient and not become stale.

initially they did for the refresh but then they granted manufacturing request for use of steel instead of aluminum parts on places like the deck lid which essentially canceled it out

I wouldn't sweat that too much: the Prius sells for far north of $30k around here and it has been a perennial strong seller. People will bend themselves in half to make themselves feel good as they drive home to their 5,500 sq ft home with 2-2 ton centra a/c units whining all day and heated, inground pool.

being able to sell a known and "trusted" (by the sheeple) Toyota hybrid for 30k is far easier then selling a new and not so trusted GM

Can't imagine why they would be thinking of ditching the NiMh batteries?!

http://www.nextautos.com/next-gen-prius-sp...34#gallery-9675

i can't tell if you're serious, but if you are, its the same reason GM is putting Li-Ion in the Volt, they are more compact last longer and have more current capacity

didn't think was anything new though. they've been saying the next-gen would be li-ion for a while

Coors?

that quote is quite stupid though.

50% owned by Canadians :wink:

You know what they say...its always darkest before the dawn...

there are only a finite number of dawns before the sun goes nova as it were

i like the the front for the most part. not crazy about the look of the back half though