CTV News reports that Ontario’s ailing automobile sector is becoming another casualty of the U.S. credit crisis. Despite a Canadian dollar that’s free-fallen to $0.77, U.S. carmakers’ cash flow problems are taking their toll. Thanks to the tightening credit noose, these corporate customers can no longer finance the cost of buying Canadian parts at the volume to which the suppliers have grown accustomed. Jayson Myers, the head of Canadian Manufacturers and Exporters, says several Canadian companies dependent on exports to the U.S. automakers are in danger of going Tango Uniform. Canadian Minister of Industry Jim Prentice agrees, noting in typical political non-committal language that ”What we have heard from the auto parts folks over the last several days relates to liquidity issues.” Myers, along with Ontario’s government, are now calling for the federal government to step in. They want federal loans guarantees for American/Canadian automakers. Like any good working girl, Myers doesn’t waste time naming his price. An immediate, short-term loan of $1b for Canadian parts makers. As a patriotic Canadian, I look forward to the day when my tax money is used to prop-up poor Frank Stronach’s crumbling empire.
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