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Winnipeg Free Press - PRINT EDITION
Ford CEO offers ideas to fix industry
Ford Canada CEO David Mondragon told MPs Monday night that manufacturers such as Ford are having trouble raising enough cash to sustain their lending and leasing businesses, key components in the retail chain.
MPs are worried that billions of taxpayer dollars they're about to spend won't actually help the ailing industry. They spent nearly four hours Monday night grilling car company executives, union leaders and industry experts.
"Before money is invested or loaned to General Motors and Chrysler, Canadians need know it's a good investment, that jobs will be protected," Liberal MP Frank Valeriote said. "We have to be satisfied it's going to do more than just keep the lights on for the next six months."
Canadian Auto Workers economist Jim Stanford told Valeriote and other MPs that should the Big Three -- General Motors, Ford, and Chrysler -- cease operations, the federal government would take a $13-billion annual hit to its budget.
Stanford arrived in Ottawa Monday night with CAW boss Ken Lewenza at his side after completing negotiations with General Motors Canada to help cut that company's labour costs. Mondragon said Ford was also negotiating with the CAW.
When an MP asked how the federal government can help make the auto industry sustainable, Mondragon replied, "First and foremost, it's strengthening and stabilizing financial markets."
Mondragon also asked parliamentarians to consider revising Canada's scrappage program. Canadians can get $300 in cash or a $500 rebate on a new car when they take a car built in 1995 or earlier to the junkyard. Ford is urging policymakers to boost the scrappage fee to about $3,500, payable only to those consumers who buy a new car and junk one that is at least 10 years old.
-- Canwest News Service
Republished from the Winnipeg Free Press print edition March 10, 2009 B7
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