Auto aid package draws quick response from Oshawa's mayor

OSHAWA -- Mayor John Gray applauds Canada's auto aid package announced Saturday saying it eases the pressure but does not eliminate the need for prompt action.

Prime Minister Stephen Harper and Ontario Premier Dalton McGuinty announced  details of Canada's $4 billion aid package for the ailing auto industry at a press conference in Toronto Saturday.

One third of the financial aid will come from Ontario. The money comes with strict conditions and an admonishment from the Prime Minister that  "all stakeholders will be expected to make adjustments to ensure that these auto manufacturers are financially competitive...that includes management, unions, bond holders, all those impacted on the supply chains."

What's John Gray saying?

In a joint statement with Woodstock Mayor Michael Harding (the two are co-chairs of the Ontario Mayor's for Automotive Investment) Mayor Gray said:

"The announcement today by Prime Minister Harper and Premier McGuinty of a rescue plan for Canada's auto sector is good news for our communities, good news for Ontario, and good news for Canada. This is the fruit of weeks of diligent work by the Prime Minister and Premier and also by ministers Clement and Bryant.

For more than half a century, the auto sector has been the backbone of Canada's industrial heartland. Never has its future and ours been more at risk than it is today. Let us be clear: the crisis hitting Canada's automotive sector is about more than saving the industry. Had the two governments not moved to deal with the crisis quickly, thousands of jobs would disappear and dozens of Ontario communities would face economic devastation.

Today's announcement is not a bailout. It provides short-term support but no guarantees. There is still much work to be done by governments and, more importantly, by the automakers. The sector will have to adjust and restructure to compete in the changing global marketplace. Today's announcement will give it the breathing room to do that and do it right.

But this is not the end of the story, because with adjustment comes dislocation. Now that we know what our governments intend to do for the auto sector, we need to hear what they intend to do for our communities. They are already suffering from a decline in manufacturing jobs and capacity, and will face new hardships as the automotive sector reinvents itself. For our communities, this is not a theoretical debate over economic or industrial policy; the issue is one of survival.

In the face of the uncertainty that still grips the auto industry and our manufacturing sector in general, Ottawa and Queens Park must immediately begin discussions on a transition strategy to assist affected communities. That strategy could include accelerated, targeted infrastructure investments to create jobs and improve our region's trade competitiveness; investments in colleges and other training institutes to expand training capacity in the region; and an economic development fund to promote the transition to a new economy.

Today's announcement eases the pressure but it does not eliminate the need for prompt action. The residents of communities in the manufacturing heartland of the province need to hear from their federal and provincial leaders how they plan to help them navigate through these turbulent times."

What's General Motors saying?

"This significant proportional support provides a welcome financial bridge at this critical time for our employees, suppliers, dealers and other partners across Canada,” says Arturo Elias, President, General Motors of Canada.

“We will work closely with the Governments and all our stakeholders to complete the major business transformation we initiated in 2005 to ensure a lean, green and sustainable business. GM Canada intends to earn the trust being placed in us. The support announced today sends a significant signal of stability in the face of the economic and credit challenges faced by Canada's auto sector.”

What's Ford saying?

"At Ford of Canada, we are well on our way to transforming our company and do not need immediate access to government loans. Instead, we have asked the government for a "stand-by" line of credit to be used only if the current economic crisis worsens," says David Mondragon, president of Ford Canada.

"We applaud the swift and coordinated action by the governments of Canada and Ontario. The auto industry is vital to the economy. In fact, one in seven jobs in Canada is dependent upon the auto sector.

We also welcome the government's plan to support the auto credit market. Canadian consumers deserve access to affordable loans and leases when shopping for a new vehicle as more than one million Canadian vehicle buyers rely on financing each year.

There is still much that needs to be done. We look forward to continuing to work with the government on initiatives that will provide long-term, sustainable growth for Canada's auto industry."

What's the CAW saying?

"The automakers haven't specifically indicated what they want from us," says CAW president Ken Lewenza. "But we will be part of any solution to retain our competitive edge in productivity."