Note also this exerpt from Q1/12 reprt.....Automodular has been asked by Ford to quote on a new vehicle program for Oakville scheduled to launch in the second half of 2014. Automodular has submitted a quotation and expects that Ford will be evaluating its options over the next few months.

 

Below is an exerpt from yesterdays Globe and mail....................the full article is also posted

 

That issue is on the table now as Ontario and Ottawa evaluate a request by Ford Motor Co. for financial help to retool its Oakville, Ont., plant to allow it to build vehicles on a global platform or basic vehicle underbody. It would assemble the next generation of the Ford Edge and Lincoln MKX crossovers, with production scheduled to begin in 2014.

Based on what is becoming the industry standard of 30 per cent government support for such a project - with each of the two levels contributing 15 per cent - Ford's request for the $1.2-billion Oakville project is in the range of $400-million

 

 

 

 

 

AUSTERITY VERSUS SUPPORT

Cash-strapped governments face a difficult juggling act: offering incentives to attract and retain big employers without blowing a bigger hole in their budgets

GREG KEENAN0

 

00:00 EDT Wednesday, June 06, 2012

AUTO INDUSTRY REPORTER

When Ontario Premier Dalton McGuinty goes a-courtin' auto makers for new investment, he needs to remember to bring flowers.

The flowers won't cause executives to swoon in his arms, but it's the thought that counts - as Tennessee discovered in 2005 when "Rita" was part of the pitch the state made to land the North American headquarters of Nissan Motor Co. Ltd.

"Rita" was a new strain of African violet. Matt Kisber, Tennessee's Commissioner of Economic and Community Development, convinced a local grower to name it after Rita Ghosn, the wife of Nissan chief executive officer Carlos Ghosn and an avid botanist.

When state officials made their pitch to Nissan, then-governor Phil Bredesen hosted a dinner party for the Ghosns at which vases of "Ritas" sat on every table, and presented her with the flower in a mahogany box with an engraved brass plate.

Mr. Bredesen is quick to say that Mr. Ghosn and Nissan chose Tennessee for reasons other than the gift given to his wife. But it surely didn't hurt.

"I think they say, 'Look, they're being creative, they're thinking about going beyond the usual kinds of things and maybe if they're that creative in this, they'll be creative when we've got problems and we need some help,'" he said in an interview.

As the decline in Canada's competitiveness erodes the country's status as an auto-making power, creativity will be essential for Mr. McGuinty and the federal government in fielding new requests for financial support from the Detroit Three car companies.

For these governments, the challenge of attracting auto makers goes beyond contending with a currency that's near parity with the U.S. dollar.

They face the increasing aggressiveness of Tennessee, Alabama and other U.S. states and Mexico, which are throwing incentives worth hundreds of millions of dollars at auto makers to finance training, infrastructure and real estate purchases and provide tax holidays to land the thousands of jobs created by assembly plants.

While those jurisdictions chase auto makers, austerity is the order of the day at both the federal and Ontario levels. That leads to a critical question: Does it make sense for cash-strapped governments that are cutting thousands of jobs and freezing the salaries of doctors to provide subsidies to profitable businesses?

That issue is on the table now as Ontario and Ottawa evaluate a request by Ford Motor Co. for financial help to retool its Oakville, Ont., plant to allow it to build vehicles on a global platform or basic vehicle underbody. It would assemble the next generation of the Ford Edge and Lincoln MKX crossovers, with production scheduled to begin in 2014.

Based on what is becoming the industry standard of 30 per cent government support for such a project - with each of the two levels contributing 15 per cent - Ford's request for the $1.2-billion Oakville project is in the range of $400-million.

Ford will not discuss its negotiations