Ontario, Ottawa commit $435M toward huge GM investment
Last Updated Wed, 02 Mar 2005 16:23:55
CBC News
OSHAWA, ONT. - The Ontario and federal governments made formal commitments Wednesday to provide General Motors with up to $435 million to support a $2.5 billion project to upgrade plants and boost research and development in the province.
Ontario Premier Dalton McGuinty said the province will provide $235 million, while federal Citizenship and Immigration Minister Joe Volpe said up to $200 million more will come from Ottawa.
GM's Beacon Project will upgrade plants in Oshawa, St. Catharines and other locations, and will spend more on research and development at McMaster University in Hamilton. The project will create 500 jobs.
Volpe's office and GM both said it's the largest automotive investment in Canadian history. GM has been negotiating the aid package with the two governments for months.
"This investment is great news for our economy, our prosperity and for all Ontarians who will benefit from new jobs," McGuinty said.
Government support has become a vital part of the automobile business. Jurisdictions compete for plants by offering incentives.
The GM investment is a bright spot in an otherwise grim time for the company.
GM's North American car and truck sales fell 12 per cent in February, compared to February 2004, the company said Tuesday. Car sales were particularly hard hit, down 17 per cent to 129,985 vehicles.
Shares of GM (NYSE:GM)were down 53 cents at $35.45 US in afternoon trading Wednesday in New York.
Last Updated Wed, 02 Mar 2005 16:23:55
CBC News
OSHAWA, ONT. - The Ontario and federal governments made formal commitments Wednesday to provide General Motors with up to $435 million to support a $2.5 billion project to upgrade plants and boost research and development in the province.
Ontario Premier Dalton McGuinty said the province will provide $235 million, while federal Citizenship and Immigration Minister Joe Volpe said up to $200 million more will come from Ottawa.
GM's Beacon Project will upgrade plants in Oshawa, St. Catharines and other locations, and will spend more on research and development at McMaster University in Hamilton. The project will create 500 jobs.
Volpe's office and GM both said it's the largest automotive investment in Canadian history. GM has been negotiating the aid package with the two governments for months.
"This investment is great news for our economy, our prosperity and for all Ontarians who will benefit from new jobs," McGuinty said.
Government support has become a vital part of the automobile business. Jurisdictions compete for plants by offering incentives.
The GM investment is a bright spot in an otherwise grim time for the company.
GM's North American car and truck sales fell 12 per cent in February, compared to February 2004, the company said Tuesday. Car sales were particularly hard hit, down 17 per cent to 129,985 vehicles.
Shares of GM (NYSE:GM)were down 53 cents at $35.45 US in afternoon trading Wednesday in New York.
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