Well I figured I might as well do an editorial on something recent and somewhat related to the economic crisis of 2008.And thus, I present my views on the impending doom of the automotive industry and manufacturing sector of Canada (and to a greater extent, the U.S).
With CUPE 3903's strike still active, I've have the time to do some research on the 'Big Detroit 3' (GM, Ford Motor, and Chrysler). With the subprime mortgage crisis and volatile oil prices, you'd think there was enough blame to go around to explain why the three largest auto giants in North America are asking for a 700 billion dollar industry bailout as a safety net.
Maybe we're forgetting something here. The Detroit 3 were famous for the SUV 'Craze' back in 1998, and a majority their production lines consisted of light trucks and of course, SUVs.
Hmm, now let's throw in Al Gore and the introduction of the Green Movement.
Oil prices sky rocketed reaching almost over $120 per barrel in May 2008. Gas went for $1.44 per litre at some stations around Toronto. Oh and of course everyone suddenly became environmentally aware. "Oh, you drive an SUV? What a waste. I've got a Hybrid. From Toyota. That's right, I care about the environment."
And now, we've got to fork over $700 Billion dollars to save the auto industry.
Bringing it closer to home, Ontario governments have already pledged up to $2.8 Billion to assist in the epidemic (according to the Financial Post, Ottawa, Ontario to give $2.8B in auto aid). Now it's a waiting game to determine whether or not the U.S administration can throw something back.
With numbers being thrown around like a beach ball, it's difficult to extract a definite source which isn't a complete exaggeration. One thing is for certain though, because of Canadian Industry Minister Tony Clement, CAW's should no longer bitch and moan about taxes.
We've already predicted 15,000 job cuts in the Canadian Auto Industry by 2009. How does it sound when you add higher taxes and greater debt?
All we need now is political unrest in Parliament and we're settled.
Oh, silly me. We have that too.
Signed,
Rio
(Image taken from http://business.timesonline.co.uk/multimedia/archive/00447/detroit__02_447901a.jpg)
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