GM Canada wants grants, not loans from the Government image

GM Canada, by the voice of its president, urges the new Government to change its current financial policy for a better support of the auto industry.

The president of GM Canada, Steve Carlisle, said he would prefer for the new Liberal government to start an incentives program for the automotive industry and to change the current policy of offering loans that must be repaid. “We’ve been lobbying for this for five years,” he said in an interview. “We need to take a hard look at that to make our federal incentives more amenable.” The car industry in Canada is going through hard times as more of North America’s light-vehicle output moves to Mexico. If Mexico’s production share in North America was 19 percent through the third quarter of this year, Canada accounted for 12.6 percent, the lowest share ever, according to Dennis DesRosiers, president of an automotive consulting firm in Richmond Hill, Ontario.

One of the major automakers who will move its output from Canada is Toyota, announcing earlier this year to move the production of the Corola model in Mexico starting with 2019. Part of Canada’s low production share in the region was the decision of Fiat Chrysler Automobiles NV to shut down its Windsor, Ontario, plant this spring for retooling, reducing the output at the factory by about 120,000 vehicles units. “Canada’s automotive industry is critical to the economy and automotive suppliers are an integral part of Canada’s automotive footprint and success,” Stefanie Power, a spokeswoman for the federal agency Industry Canada, said. “The government has made it clear that it is interested in actively listening to all policy ideas in support of its goal to help Canadian businesses grow, innovate and export so they can create jobs and wealth.”

Via Bloomberg