Hot on the heels of a $275 million “investment”, Holden is going back to the Australian government, hat in hand, asking for more money. This time, Holden wants another $265 million to keep their assembly plants online.
Ford has long been at the forefront of the currency debate, claiming currency manipulation when the yen went to levels that nearly killed the Japanese auto industry, and shouting “currency manipulation” now that the yen is back to normal levels. Now, Ford itself experiences the devastating effects of changing exchange rates: Ford is shutting down all its manufacturing operations in Australia. The reason: A strong Australian dollar. Says Reuters: (Read More…)
Even as Canada’s manufacturing sector continues to dwindle, Ford is set to invest even further in its Canadian operations, putting together a new investment package for its Oakville assembly plant – provided the federal and Ontario governments can come up with the scratch.
More than any other country, Canadian-built vehicles seem to have an inordinate amount of foreign parts content, according to a study done by Scotiabank Economics.
Jac Nasser, the former head of Ford, is warning that Australia’s car industry has passed the point of no return, and expects to see it die within the next few years.
Upon receipt of a multi-billion dollar loan from the Canadian government, General Motors signed a “Vitality Commitment”, essentially a covenant in the loan agreement between GM and Canada’s government, which guaranteed that a certain amount of GM’s North American production would remain in Canada. That number is widely reported as being 16 percent, while page F-69 of GM’s IPO filings outlines that the covenant is valid until GM repays its loan commitments or until December 31, 2016, whichever comes later.
While Oshawa has widely regarded as one of GM’s best plants in terms of producing high-quality vehicles, the future of GM’s Oshawa plant is looking increasingly bleak.
A parts shortage has resulted in a shutdown at Chrysler’s Windsor Assembly Plant, home of the Dodge Grand Caravan and Chrysler Town & Country.
The Canadian government will put up $250 million as part of an “auto innovation fund”, a continuation of a 2008 program which the government claims led to over $1 billion in spending. (Read More…)
Buried deep within a piece on the proliferation of car plants in Mexico is a musing from University of Michigan professor Jeff Liker, about the future of Toyota and Mazda.
Nissan makes 90 percent of all Muranos in Japan, but 70 percent of them get exported to the United States. Making them Stateside should be a no brainer, right?
Nowadays, the only way to make cars profitably is to take advantage of economies of scale; and nobody is better at maximizing the “one sausage, many lengths” method of automobile production than Mini. Forget talk of “brand values” and “heritage” – we’re in a different era now.
The Canadian Auto Workers and the Big Three have kicked off labor talks, with the CAW taking a hard line against concessions – a position that some say, could lead to a lack of future in investment in Canadian auto manufacturing.