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-   -   Canada lagging behind U.S. auto recovery (https://www.cmoc.ca/ford-news-23/canada-lagging-behind-u-s-auto-recovery-16973/)

2tone 12-28-2011 07:35 PM

Canada lagging behind U.S. auto recovery
 
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The Detroit Three are in much better financial shape than three years ago. General Motors and Ford are now profitable, and Chrysler appears poised to begin making real money soon. That success has lead to plans to spend billions of dollars on North American plants, but Automotive News reports that our friends to the north aren't seeing much of the money.

Ford, GM and Chrysler are reportedly planning to spend at least $13.3 billion in the U.S. in the next four years, but investment in Canadian plants is dropping fast. In fact, there was only $1.2 billion in plant spending in Canada in 2011, down 62 per cent versus the average of the last decade. A big reason for the decline in spending is the strength of the Canadian dollar and the relative weakness of the U.S. dollar.

Automakers are also spending more in the U.S. thanks to a new labour agreement with the United Auto Workers, which helps level labour costs compared to foreign rivals. Meanwhile, automakers and the Canadian Auto Workers are now working on a new contract for 2012. The CAW has so far fought many of the cost cuts that the UAW has accepted.

To make matters worse for the Canadian auto climate, Ford closed the St. Thomas plant that once built the Lincoln Town Car and Ford Crown Victoria, and GM has reportedly announced plans to build two models in the U.S. that are currently being built in Canada.

We're guessing that while the Canadian announcements have been few and far between in the past year or two, that could change if the CAW makes a few concessions at the bargaining table in 2012. If not, auto jobs in Canada could be in real trouble.

SNAKEBITE 12-28-2011 07:58 PM

Hopefully the CAW does not sink itself

ChadStang 12-28-2011 10:13 PM


Originally Posted by SNAKEBITE (Post 166961)
Hopefully the CAW does not sink itself

No doubt

VAEM 12-29-2011 06:31 AM

I'd hate to see auto production dissappear from Canada.

SNAKEBITE 12-29-2011 05:29 PM

Windsor has been hammered and it is sad to see really

1low03gt 12-29-2011 05:37 PM

Why have the CAW been a real pain in this from the start. They are killing us here! It's almost like they are acting that nothing has happenned over here!

VAEM 12-29-2011 06:31 PM

^^^ Yea, time to wake up and smell the ink on the pink slips boys. Stop worrying about saving the union and start worrying about saving the jobs you exist to protect. How many plants need to close, how much more do Windsor and Oshawa have to die before you wake up. :mad:

SNAKEBITE 12-29-2011 10:48 PM

I did not know Oshawa was in super bad shape, sorry to hear that. Windsor used to be a thriving (albeit auto) city up until recently and it's tough to witness its downfall. Oh well I try by buying Big 3 every time

VAEM 12-30-2011 11:01 AM

Me too. I'm still a big fan of American iron. Nothing like it.

1low03gt 12-30-2011 06:33 PM

Same here, love north american cars/trucks..... but you can't deny that some of our foreign neighbours do design some nice, quality automobiles today, and they are very competitive in warranty,miliage, ects...

SNAKEBITE 12-31-2011 12:25 AM

Luckily N American manufacturers have caught up with the quality thing

LazerRed2002GT 12-31-2011 10:49 AM

Canada Lagging
 
Its up to the people if they want to support unions. Unions have their own agenda and making it hard to do business in Canada. Think of all the spinoff jobs that are lost due to a major plant closing. Our life style in Canada is getting to high. Too much money in the hands of few.
I bought a Toyota Rav 4 for work with 4 wheel drive and 4 cylinder. It gets great gas mileage, but repairs after warranty are expensive. I still have an 06 4WD Escape and the maintenance on it is less expensive than the Toyota. There just is not any secret technology out there that makes Toyota better.

1low03gt 12-31-2011 05:59 PM


Originally Posted by SNAKEBITE (Post 167352)
Luckily N American manufacturers have caught up with the quality thing

They sure have! :tup

SNAKEBITE 01-01-2012 10:08 PM


Originally Posted by LazerRed2002GT (Post 167423)
Its up to the people if they want to support unions. Unions have their own agenda and making it hard to do business in Canada. Think of all the spinoff jobs that are lost due to a major plant closing. Our life style in Canada is getting to high. Too much money in the hands of few.
I bought a Toyota Rav 4 for work with 4 wheel drive and 4 cylinder. It gets great gas mileage, but repairs after warranty are expensive. I still have an 06 4WD Escape and the maintenance on it is less expensive than the Toyota. There just is not any secret technology out there that makes Toyota better.

I have heard there are 7 jobs per re spinoff:chacha:


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