2500 more jobs lost again

[wd9]

I get $4 million per employee, never have to work! ELECTRIC? where does all the ELECTRICITY come from? Wrong answer...doesn't work well in the COLD of Canada.

Who says you have to sell them all in Canada? Who says you have to drive them in the winter?

[dmlfarmer]

Tweet this morning informed me that in 2009, gov of Canada loaned/gave GM 10 billion dollars. That bought ten more years of operation of Oshawa plant. I don’t have a clue how much GM paid back but some one on AV probably knows, but assuming the loan/gift was never repaid, the cost to the taxpayer - $250,000 per employee/year. Like I say, I can’t verify any of this and I wonder if anyone really can.

already did in post 61
Here is a timeline of events leading up to this, just so you are all answering from the same basis.
-2009 global recession results in both GM an Chrysler filing for bankruptcy.
-US provides 66 billion in bailout funding and to prevent companies abandoning Canada, Harper government provides about 15 billion in bailout funding
-Roughly 1.5 billion of Canada bailout go towards the bankrupt companies and as early as 2014 government confirmed this money was uncollectable as these companies no longer exist.
-13.7 billion of Canada bailout was used to buy stock in new GM and new Chrysler companies. This stock purchase did not direct how bailout funds were to be used, only that auto production must continue in Canada until 2016.
-in 2014 the Conservative government dumped their ownership of remaining 73.4 million GM shares (had sold other shares previously) in order to balance the budget. This sale closed the book on the share investment the government had made in the companies and resulted in a loss of about 3.5 billion.
-This spring Morneau officially wrote off the uncollectable 1.5 billion that had been given to the old GM and old Chrysler companies.

Total non recoverable bailout in 2009 to old companies: about 1.5 billion
Total share purchase with bailout money by governments (Canada and Ontario): about 13.5 billion
Total sale of those shares less initial outlay forshares by governments: loss of about 3.5 billion (but hey, the conservative government that resorted to dumping 73.4 million shares on the market was able to say they were balancing the budget)

[fjlip]

Nobody can tell business they HAVE to keep doing what they are currently doing. Thousands of elevators crashed and burned due to business decisions. Right or wrong, nobody stopped it. Listening to lots of "experts" in the news, IMO perhaps GM is way ahead of the impeding change in the market, certain models are NOT selling. Consumer demand is changing, so they are cutting losses, inventory KILLS.
Perhaps self driving is next big seller? Will see if other car makers follow. What is happening in Europe, China? If we don't learn from the past we are DOOMED to repeat...some one said that. NO GOV/OUR $$$ into cars!

[dmlfarmer]

As far as I'm concerned the UAW have negotiated themselves right out of a job over the last how many decades. Jobs moved to low cost production areas and now the high and mighty high priced jurisdictions want to dictate to those areas how to treat their employees and how much to pay them. Geez...maybe those jobs could all be here if production costs were competitive with the places those jobs moved to...

The UAW are a victim of their own "success".

Farmaholic: I agree. But then you have to ask yourself are Canadian farmers not doing the same thing. Our costs of production exceed many other nations because we have bid up land prices well beyond productive value, many farmers insist on and willingly pay outrageous prices to have new equipment each year, farmers continue to try to maximize production in spite of oversupply of many commodities and falling prices, and now because of the backlash by consumers over our high input and chemical usage we are trying to dictate to consumers that they have to eat what we produce. And now when our customers are refusing to purchase from us because of dockage, or chemical residues, or higher costs than new lower cost producers, we are crying to and faulting governments that they are not bailing us out.

[Oliver88]

Who says you have to sell them all in Canada? Who says you have to drive them in the winter?

Why would you build a car in Canada where your heating, electricity, labour/union fees are higher than USA or Mexico?
Than add on shipping costs to export them?

Does this sound like a wise business decision?

[Guest]

Farmaholic: I agree. But then you have to ask yourself are Canadian farmers not doing the same thing. Our costs of production exceed many other nations because we have bid up land prices well beyond productive value, many farmers insist on and willingly pay outrageous prices to have new equipment each year, farmers continue to try to maximize production in spite of oversupply of many commodities and falling prices, and now because of the backlash by consumers over our high input and chemical usage we are trying to dictate to consumers that they have to eat what we produce. And now when our customers are refusing to purchase from us because of dockage, or chemical residues, or higher costs than new lower cost producers, we are crying to and faulting governments that they are not bailing us out.

You need to put things in perspective ?
2500 auto worker jobs called for an emergency meeting
Tarriffs in india didnt even warrant mr dressup asking about them when he was performing there
25000 oilpatch jobs gone didnt fizz on this gong show
Read larry webers comments on todays newsletter, he puts it in perspective for you

[jimmy]

Why would you build a car in Canada where your heating, electricity, labour/union fees are higher than USA or Mexico?
Than add on shipping costs to export them?

Does this sound like a wise business decision?

I agree hasn’t Ontario got the highest hydro costs in NA

[fjlip]

Question period, Andrew stated Ontario hydro cost are DOUBLE those of Texas, and NO F*CKING carbon tax threat!

[grassfarmer]

I agree hasn’t Ontario got the highest hydro costs in NA

Not even the highest in Canada according to this Government graphic (from April 2017)

[oldguy48]

You need to put things in perspective ?
2500 auto worker jobs called for an emergency meeting
Tarriffs in india didnt even warrant mr dressup asking about them when he was performing there
25000 oilpatch jobs gone didnt fizz on this gong show
Read larry webers comments on todays newsletter, he puts it in perspective for you

Who is Larry Weber?
A link to the article would be nice otherwise this means little.

[Guest]

Weber commodities
newsletter is on a paid subscription
I will let larry post his newsletter for today if he so chooses ?
it was good how he talked about the "calamity" surrounding 2500 lost auto jobs compared to farmers dwindling net income

[farmaholic]

Who is Larry Weber?

HUH? I can't even go there...