Canada’s Auto Industry Is Hooked On Subsidies, And It Won’t End Well


Locutus
#1
Just a few short years after the Canadian and Ontario government bailed out General Motors and Chrysler, a familiar scenario is playing out along Highway 401. Chrysler is reported to be negotiating with both the Ontario and Canadian federal government regarding subsidies for their Windsor assembly plant that builds the Dodge Caravan and Chrysler Town & Country minivans.

While auto makers like Ford and Toyota have received government money recently, the size and scope of the subsidies are said to be unprecedented. And according to reports, Chrysler is threatening to leave if they don’t get what they want. According to the Financial Post, Chrysler is looking for a total of $460 million (compared to the $71 million and $34 million received by Ford and Toyota respectively), which would represent about 20 percent of the planned $2.3 billion investment. Chrysler is said to be seeking funding for R&D work on the new vans, as well as money to revamp Windsor to a new flexible assembly plant that can build sedans, minivans and crossovers. Reports from the Windsor Star quote Ontario government officials as stating that they are in “serious negotiations” with Chrysler. When reached by TTAC Chrysler Canada refused to comment.


fuk 'em...read on:


Editorial: Canada’s Auto Industry Is Hooked On Subsidies, And It Won’t End Well | The Truth About Cars
 
tay
+1
#2
That's a shoulder shrug in the excitement category. Subsidies in all business continue to go on.


The automotive get's the big notice because it's so public in many ways, plus the Americans are always willing to subsidize any of those companies to entice them to move south.....
 
Blackleaf
#3
Meanwhile Britain's car industry is booming and we have just overtaken France on car production.

And the BoE has increased Britain's 2014 economic growth forecast from 2.8% to 3.4%.
 
mentalfloss
#4
Canadian budget boosts subsidies for auto industry: Thomson Reuters Business News - MSN Money
 
Walter
+1
#5
Gubmint always finds a way to waste my money.
 
tay
+2
#6  Top Rated Post
When it comes to its farmers, the U.S.A. is a veritable nanny state

Among the many myths Americans entertain about themselves is the belief they're self-made; that any success they might enjoy is in spite, rather than with the help, of government.

As Ronald Reagan once said, to a great chorus of cheers, "government isn't the solution to our problem, government IS the problem."

Nowhere is that notion more fiercely beloved than in the vast spaces between this nation's cities; in gun-toting, Republican-voting, tall-standing, rural America.

It's a delusion, of course. U.S. farmers are practically wards of the American nanny state.

But it's a delusion the legislators who represent rural America — both Republican and Democrat — are willing to pay to maintain.

Big time, in fact: propping up delusions wins elections.

Take the outrageous story of Washington's hush money to Brazil. It's not one that's widely known in the U.S., probably because it cuts against Reagan's government-is-the-problem narrative.

But it beautifully illustrates the lengths to which Congress will go to coddle and protect certain American businesses, even as Washington accuses other countries, like China or even Canada, of unfair trading when they do the same thing.

The Brazil story goes back to 2002 when the government of Brazil lodged a complaint against the U.S. government for unfairly subsidizing American cotton farmers.

The Brazilians had an excellent case; Washington has for decades been paying farmers cash whether they grow crops or not.

But U.S. cotton producers are a powerful lobby. They account for most of the world's cotton exports, and employ 200,000 people in 17 states.

Between 1995 and 2012, the U.S. government has paid its cotton producers $32.9 billion, giving them a crushing advantage over farmers in other countries, particularly those struggling along in poor nations like Mali.

So, Brazil took the U.S. to the World Trade Organization for arbitration, and Brazil won.

The Americans appealed, and the Brazilians won again. And again.

Finally, in 2010, with the WTO's approval, Brazil began compiling a list of retaliatory tariffs against American goods, in effect threatening a trade war.

It was at that point that someone in Washington came up with the idea of simply bribing the Brazilians.

As a strategy, it was very effective. For $147 million a year, the Brazilian cotton growers agreed to shut up and let the Americans keep subsidizing their cotton growers.

Voters in the 17 cotton-producing states would continue to send (mostly) Republicans to Congress, and Ronald Reagan's small-government delusion would remain intact.

"Wow," said a Canadian official I know, when told about the sweet Brazilian deal. "Our beef producers would love some of that action."

For livestock producers, country-of-origin labelling is currently Canada's biggest beef, so to speak, with the Americans.

Since 2002, largely as a result of the mad cow scare in Britain, the U.S. has required meat producers to segregate and label animals from abroad, which makes it more expensive to sell Canadian beef here, and therefore injures Canadian meat exports. They've dropped by about half since 2008.

The Canadian government regards county-of-origin labelling, or COOL, as a legal gimmick where the real intent is to protect the American beef industry from competition. (The beef in both countries is genetically identical, and the herds are for all intents and purposes integrated.)

So Canada, like Brazil, took the U.S. to the WTO and won its case.

But the Americans came up with a legal workaround that just made matters worse for Canadian farmers. And the recent farm bill from Congress failed to make the change Ottawa asked for, so the Canadian government is now threatening to go back to the WTO.


Take that massive farm bill just passed by Congress.

It will spend a trillion dollars over 10 years, much more than President Barack Obama's stimulus spending that Republicans railed against so angrily, and yet it has gone largely unreported in U.S. media.

The bill is a cornucopia of government subsidies and largesse — to satisfy Democrats, a lot of it actually goes to food-stamp programs in urban areas.

But it is also a massive crutch for American agribusiness, mostly courtesy of congressional Republicans, who are supposed to stand for lower spending and less government.

The irony here is that Canada, regarded by American conservatives as some kind of socialist co-operative, has actually been doing the opposite: reducing farm subsidies and making farmers more responsible for their own losses, while the U.S. Congress keeps the public teat open.

And all the while, says Peter Clark, "Americans actually don't think they are subsidized."

That's not to say there aren't angry conservative voices here. The Wall Street Journal called the farm bill a raid on taxpayers: "Handouts to agribusiness and millionaires? Continued trade protectionism for the sugar industry? It's all still there."

Brazil wasn't terribly impressed, either. Last fall, after the arbitrary cuts to government spending known as "the sequester" put an end to Washington's millions in hush money to Brazilian cotton producers, the Brazilian government once again began readying barriers against a wide range of U.S. goods.

A trade war could be under way by the end of this month. Unless, that is, Washington figures out some new way to protect its protectionism.








New U.S. farm bill coddles farmers, ignores Canada's plea - World - CBC News

 
petros
#7
What Canadian farm subsidies?
 
Walter
#8
Quote: Originally Posted by petrosView Post

What Canadian farm subsidies?

Researcher calls for rethink on farm subsidies
Consumers' Association of Canada: Canadian Consumers Pay Subsidies of $2.5 Billion .....
 
petros
#9
Dairy? That's not farming.
 
lone wolf
Free Thinker
+2
#10
Tell that to someone who has to take a break from hauling in the hay to go milk the cows....
 
Locutus
#11
Maybe they're not 'real' farmers, 'official' farmers. You know.

Or folks with fields of vegetables, taters, sugar beets, or marijuana. Maybe they're just horticulturalists, hobby farmers, small-time dudes and dudettes.
 
petros
#12
Quote: Originally Posted by lone wolfView Post

Tell that to someone who has to take a break from hauling in the hay to go milk the cows....

They spend more time cleaning equipment than hauling silage or milking. We are in a new century now you know. Things aren't like in the Old MacDonald's Farm kids books you once read.
 
Liberalman
#13
It's time for Canada to build their own cars
 
lone wolf
Free Thinker
#14
Quote: Originally Posted by petrosView Post

They spend more time cleaning equipment than hauling silage or milking. We are in a new century now you know. Things aren't like in the Old MacDonald's Farm kids books you once read.

Ohh... yer just such a clever li'l fellah
 
taxslave
No Party Affiliation
+2
#15
Quote: Originally Posted by LiberalmanView Post

It's time for Canada to build their own cars

And subsidize a whole new industry? Great liberal thinking.
Hey how about since it is your idea you go design a car and build a factory. Give me one a dealer cost, zero interest for 7 years and full warranty for the same time and I will buy one.

In Kentucky and Tennessee they can get factory labour for $13/hr with no bennies. Thin the CAW will follow along?
 
L Gilbert
No Party Affiliation
#16
Quote: Originally Posted by petrosView Post

Dairy? That's not farming.

How about this: http://www.uoguelph.ca/fare/institut...e_Fall2013.pdf
Canadian Agriculture Subsidies
Researcher calls for rethink on farm subsidies

Almost anything in Canada is hooked on subsidies.
 
petros
#17
They are talking about competing with EU WITHOUT subsidies like other countries.

Right now I'd love a subsidy. I have 1600 tonnes sitting that I can't sell until August or September if lucky. I'm going to have to take a loan for overpriced diesel and a high yield seed package just to get a crop in the ground in May.
 
Liberalman
+1
#18
Quote: Originally Posted by taxslaveView Post

And subsidize a whole new industry? Great liberal thinking.
Hey how about since it is your idea you go design a car and build a factory. Give me one a dealer cost, zero interest for 7 years and full warranty for the same time and I will buy one.

For the amount of money the government is giving to the car makers it's could be done and it would be a Canadian made solution. You have to remember about the Avro Arrow so designing a car would be a walk in the park and distribution is no sweat for Canada and we could build it cheap if we want. .
 
petros
+2
#19
Quote: Originally Posted by LiberalmanView Post

For the amount of money the government is giving to the car makers it's could be done and it would be a Canadian made solution. You have to remember about the Avro Arrow so designing a car would be a walk in the park and distribution is no sweat for Canada and we could build it cheap if we want. .

Oh Great. Canadian Yugos and Ladas.
 
Liberalman
#20
Quote: Originally Posted by petrosView Post

Oh Great. Canadian Yugos and Ladas.

More like the Maple Leaf Eh!
 
petros
#21
Will it rust in autumn like a real maple leaf?
 
Liberalman
#22
Quote: Originally Posted by petrosView Post

Will it rust in autumn like a real maple leaf?

No and cheaper than a federal Conservative Senator.
 
petros
#23
Quote: Originally Posted by LiberalmanView Post

No and cheaper than a federal Conservative Senator.

Manitoba Maple?
 
tay
#24
Quote: Originally Posted by taxslaveView Post

And subsidize a whole new industry? Great liberal thinking.
Hey how about since it is your idea you go design a car and build a factory. Give me one a dealer cost, zero interest for 7 years and full warranty for the same time and I will buy one.

In Kentucky and Tennessee they can get factory labour for $13/hr with no bennies. Thin the CAW will follow along?




And in those States they get all kinds of subsidies.




Republican Legislature and Governor of Tennessee have threatened to eliminate the tax breaks that benefit Volkswagen for placing their manufacturing plant in the State.




The mayor of Lansing, Michigan, Virg Bernero -- a staunch pro-union Democrat -- has publicly invited Volkswagen to relocate their manufacturing plant to Lansing, if the Republicans in Tennessee, eliminate their tax breaks.






Volkswagen wants the UAW. The CEO spoke in favor of letting the workers decide.




Our strong desire is to have a works council present in Chattanooga," Jonathan Browning,Volkswagen Group of America's president and CEO, said in an interview at the Los Angeles Auto Show. "The challenge in a U.S. context is how to bring that into being. That's obviously the point of discussion in terms of how you actually move forward."

The UAW has pushed VW to accept a German-style labor council at the plant in Chattanooga, which would require the involvement of the U.S. union under American labor law. VW said in September it was in talks with the UAW about establishing such a labor council at the plant, which would be a first for the U.S. union.




Volkswagen Wants A German Labor-Model For Its US Plant - Business Insider
 
Walter
#25
Quote: Originally Posted by LiberalmanView Post

No and cheaper than a federal Conservative Senator.

I believe it was the Lib senator who stole the most.
 
Liberalman
#26
Quote: Originally Posted by WalterView Post

I believe it was the Lib senator who stole the most.

Here is an update Tory senators expense business-class flights with spouses - Politics - CBC News

Conservatives like the cookie jar as well
 
Walter
#27
Quote: Originally Posted by LiberalmanView Post

Here is an update Tory senators expense business-class flights with spouses - Politics - CBC News

Conservatives like the cookie jar as well

Harb was over $250k.
 
lone wolf
Free Thinker
#28
That's why there are no Liberal senators....
 
L Gilbert
No Party Affiliation
+2
#29
"Canada’s Auto Industry Is Hooked On Subsidies, And It Won’t End Well"

Which major company isn't hooked on subsidies or corporate welfare?
 
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