Rock, Magna executive disagree on action needed to lure car plants
Saying government investment is needed to secure the future well-being of the Canadian automotive parts industry, I...
Saying government investment is needed to secure the future well-being of the Canadian automotive parts industry, Intier president and CEO Don Walker stated that the government should “come up with an offer” to ensure several automotive OEMs build new car plants in Ontario.
Speaking at the Automotive Parts Manufacturers’ Association in Hamilton, ON, Walker said the government needs to realize how fierce the competition is for automotive assembly plants among countries, and regions of countries. Walker said government offers to get OEMs to locate plants in Canada should include cash, if necessary.
The Ontario and federal governments are currently in negotiations with Daimler-Chrysler AG to build a US$1.1 billion auto assembly plant in Windsor, ON. So far the governments have indicated they are willing to give the carmaker an “incentive” package consisting of tax breaks and programs to support research and development. However Minister of Industry Alan Rock, who shared the stage with Walker at the APMA conference, said he did not think it was wise to give automotive companies cash.
Along with Daimler-Chrylser, Ford Motor, Toyota and Mitsubishi are also considering building auto assembly plants in Ontario.