#Canada

When the news came out last night of American Suzuki Motor Corporation (ASMC) filing for Chapter 11 bankruptcy, I was glad to be validated in my suspicions, but sad that a potentially great opportunity had been wasted due to mismanagement and short-sightedness on behalf of its Japanese management.

In other regions, Suzuki does an excellent job catering to the needs of each domestic market. In India, through their long time partnership with Maruti (which has since turned into full ownership of the once state-owned automaker), Suzuki enjoys double digit market share that is the envy of every other automaker in the country. Maruti Suzuki has control over product, they understand the needs of Indians looking for new cars, and they have enough financial input into SMC’s bottom line that the executives in Japan have no choice but to listen.

American Suzuki Motor Corp may have gone bust, but Suzuki cars will continue to be sold in Canada, where the SX4, Kizashi and Grand Vitara are still offered (but not the Equator pickup).

photo source: Wikipedia

Statistics Canada reports that there are more than 26 million registered vehicles deemed fit to ply our 900,000km of Canadian roadway. Not bad for a group of souls who wear wool socks for six months of the year and feast on poutine. Transport Canada sets regulations for such things (the cars, not the poutine) and is thus charged with crashing, smashing, and otherwise ruining brand new vehicles with single digits on their odometers – all in the name of safety, of course.

A brief, two-day strike at a Lear seat plant near Toronto has ended, with production at GM’s Oshawa plant back on schedule.

Today was a historic day in my automotive life; I drove my first Chinese car.

Brazil detailed their new five-year national auto policy, which is meant to spur investment in new auto factories, locally sourced parts content and reduced vehicle prices.

Shares of General Motors held by the Canadian federal government and the government of Ontario may have difficulty unloading their $9 billion stake in General Motors, according to a report by Bloomberg.

The CAW and General Motors have reached a tentative agreement, sticking closely to the “pattern” set by negotiations between Ford and the CAW.

The Windsor Star is reporting that the CAW “has all but given up” on trying to re-open the Oshawa Consolidated line that was closed earlier this year. The Star quotes CAW President Ken Lewenza as saying

“We’re going to keep raising it until the deal is done…But the reality is vehicle production is based on market and market is based on capacity and GM told us they don’t need the capacity.”

The CAW is still in talks with Chrysler and General Motors to continue hammering out the details of their labor agreements, but the discussions have reportedly slowed as the two companies comb through the “pattern agreement” reached with Ford.

Ford and the CAW have reached a 4 year collective agreement to Sept 2016. Details from the CAW press conference below.

With the CAW’s strike deadline set for 11:59 P.M tonight, the union will apparently focus on Ford as the target for a collective agreement, while also remaining in talks with Chrysler and General Motors.

With the CAW’s strike deadline just four days away, the union has apparently tabled a proposal to reduce wages for new hires, a move that would stop short of a true two-tier wage system, but meet a major demand of the Big Three auto makers.

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.

Canadians have some of the highest household debt levels in the world, thanks to cheap mortgages and home equity credit lines. And car loans are next.