The Globe and Mail reports in its Monday edition that before President Donald Trump began his campaign against the Canadian auto sector, the industry was already struggling, with long-term production declines and two assembly plants -- Ford in Oakville and Stellantis in Brampton -- idled for retooling. The Globe's Eric Atkins writes that the bad news raises questions about the wisdom of taxpayer handouts to carmakers that can walk away when times change.
Generally, there are strings attached related to employment, production and amounts spent by the companies themselves. The department of Innovation, Science and Economic Development said $236-million in federal money had been "disbursed" to GM by the end of fiscal year 2023-2024 but declined to say what job guarantees accompanied the funding.
"The government is actively engaging with General Motors to ensure all outstanding conditions under the agreement are fulfilled," the department said in a statement, describing the funding as "partially repayable." the Fraser Institute's Jason Clemens says the GM and Stellantis cuts showcase poor government decisions. He believes that funds would be better used to cut taxes and foster a better environment for all businesses.
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