Welcome to the North American Subaru Impreza Owners Club Sunday July 13, 2014
Home Forums WikiNASIOC Products Store Modifications Upgrade Garage
NASIOC
Here you can view your subscribed threads, work with private messages and edit your profile and preferences Home Registration is free! Visit the NASIOC Store NASIOC Rules Search Find other members Frequently Asked Questions Calendar Archive NASIOC Upgrade Garage Logout
Go Back   NASIOC > NASIOC General > News & Rumors > Non-Subaru News & Rumors

Welcome to NASIOC - The world's largest online community for Subaru enthusiasts!
Welcome to the NASIOC.com Subaru forum.

You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, free of charge, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, so please join our community today!

If you have any problems with the registration process or your account login, please contact us.
* Registered users of the site do not see these ads.
Reply
 
Thread Tools Display Modes
Old 05-07-2009, 03:10 AM   #1
AVANTI R5
Scooby Guru
 
Member#: 73805
Join Date: Nov 2004
Default Canadians Hosed by Chrysler




Quote:
s the Canadian government's bailout of Chrysler Canada the worst deal it has ever made? Quite possibly, some critics say, and more of the same is waiting just around the corner as General Motors prepares to ask that country's taxpayers to fork over a similar amount of money in a few weeks' time Ottawa and the Ontario government are contributing a total of $3.2 billion in loans to keep Chrysler Canada alive, including $850 billion extended to the ailing automaker at the beginning of the year. Prime Minister Stephen Harper and Ontario Premier Dalton McGuinty have characterized the Canadian contribution as proportional to the $12 billion in emergency loans that the Obama Administration has made available to Chrysler LLC, now under Chapter 11 bankruptcy protection. (See the worst business deals of 2008.)

Not quite. In fact, Canada is paying a significant premium over the U.S. to save Chrysler jobs at home, with no guarantees that the billions it is laying at the automaker's door will ever be repaid or do anything to help maintain the country's 20% production share of the North American auto industry.

The Canadian rescue package works out to more than $340,420 for every employee at Chrysler Canada, which has 9,400 hourly and salaried workers on payroll. That's 15% more than the $295,000 per employee that Washington is shelling out to save about 40,000 Chrysler jobs in the U.S. "This money will never be paid back to the Canadian government," says Toronto auto analyst Dennis DesRosiers, with DesRosiers Automotive Consultants. "The deal has been spun in a positive way, but if taxpayers understood what's really going on, they would revolt."

What's really going on behind the scenes of the Canadian bailout of Chrysler has more to do with politics than economics. Car dealers and parts suppliers have engaged in a ferocious campaign to save the automaker, both in Ottawa and at the Ontario legislature in Toronto. At the same time, Harper and McGuinty are fearful of the repercussions of having Chrysler Canada fail on their watch, possibly triggering a collapse of Ontario's auto sector.

Harper's minority Conservative government in particular needs votes in Canada's industrial heartland if it is to survive a general election, which might come as early as next month. (See the 50 worst cars of all time.)
Also, the Obama Administration has made it clear that Canada needs to step up with a serious rescue package for Chrysler and General Motors if it wants a voice in how the North American auto industry is restructured. But it's already a silent partner, receiving just 2% of Chrysler and one director on the new board in exchange for $3.2 billion in support. That's poor payback, says Jack Layton, head of the New Democratic Party, Canada's fourth largest federal party, which enjoys strong union ties. "The government did not fight hard enough for job and production-share guarantees," he says.
http://www.time.com/time/world/artic...896530,00.html
AVANTI R5 is offline   Reply With Quote
Old 05-07-2009, 11:43 AM   #2
Singularity
Scooby Newbie
 
Member#: 201021
Join Date: Jan 2009
Location: Sacramento
Vehicle:
Old Pickup

Default

Love your title.

Quote:
Originally Posted by Time View Post
...including $850 billion extended to the ailing automaker at the beginning of the year.
Really? That should be 850 million dollars.
Singularity is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
'06 STI First Ticket Speeding 105/70 merging onto I-75 SB by Chrysler Bldg eSToI Loco Mid West Subaru Owners Club Forum -- MWSOC 17 10-12-2005 08:37 PM
A rubber hose by DP.... DickWRX Factory 2.0L Turbo Powertrain 17 06-21-2004 12:28 PM
Rubber Hose By Downpipe? STI 2 NV Factory 2.0L Turbo Powertrain 3 05-30-2004 08:18 PM
Buy Vishnu IC hoses by itself? Drews_WRX Factory 2.0L Turbo Powertrain 34 09-26-2002 12:48 AM


All times are GMT -4. The time now is 01:34 AM.


Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Powered by Searchlight © 2014 Axivo Inc.
Copyright ©1999 - 2014, North American Subaru Impreza Owners Club, Inc.