Ontario overshadowing Michigan as auto manufacturing powerhouse.

[nine23]

Saturday, July 16, 2005
Montreal Gazette


~snip

LANSING, Mich. (AP) - For decades, Michigan has been the undisputed king of car and truck production in North America, a powerhouse that last year alone built roughly 2.6 million Chevrolet Silverados, Ford Mustangs, Jeep Grand Cherokees and a host of other models.

But even with those impressive numbers, Michigan lost its lead in 2004 to neighbouring Ontario, long a car-building centre but largely situated in Detroit's shadow. Separated from Michigan by lakes Huron, Superior and St. Clair and an occasional river, Ontario produced nearly 103,000 more vehicles than Michigan last year.

What's more, ever-growing foreign automakers such as Toyota Motor Corp. and Honda Motor Co. continue to beef up or announce new operations in the Canadian province.

~snip

Skyrocketing U.S. health care bills, which the Big Three cite as one of their biggest obstacles for competing with foreign automakers, also are a factor in Ontario's growing production.


Link to article


I find it interesting that the differences in health care costs between the two countries can play such a major role. (ie. adds "about $1,400 to every vehicle" made). Is it possible greedy US HMO's could indirectly destroy a completely separate industry? It appears so...

On a lighter note, I find it comically ironic that accompanying this article in The Gazette is an ad for...Hummer!!!

[wli]

1. nationalized healthcare is good for business

Proof above.

[stevedeshazer]

2. Just more evidence that "free market" capitalism doesn't work.

The radical right in the US criticizes Canada's universal health care system, yet here is solid evidence that universal health care helps the economy.

[maveric]

3. Are the wages for Canadian auto workers lower that US workers?

[Upfront]

4. Not Much

if any.

[nine23]

5. Both industries have virtual parallel histories...

...dating back to the invention of the automobile. Same strong unions and general wage parity, although there's bound to be diferences in currencies, taxes, etc. at the end of the day (so to speak). If you're thinking that maybe Canadian auto workers are paid Mexican auto worker's/Wal Mart wages, no...they've always been generally comparable.

[Coastie for Truth]

6. Nasty Little Secret About Software Industry ...

Vancouver is attracting "start-ups" away from the Seattle-Tacoma-Redmond WA metro area.

Salaries are about the same.

There are some tax breaks for citizens of states of the former British Empire (e.g., India, Pakistan, Sri Lanka) to locate in Canada.

Health care is "socialized" -- and not having to pay for insurance premiums (paid for out of corporate income tax and personal income tax) goes right to the "bottom line" of a cash starved start up.

Plus - Vancouver is a nice place to live and work - has the charm of the "old" San Francisco and of Portland and of Seattle.

If I moved to Canada - I would pick Vancouver over Montreal or Toronto.

[nine23]

8. I work in corporate video/media in Vancouver/Victoria.

A full 60-70% of our work is to "sell" this very concept, not just for start-ups, but for existing firms looking to expand, relocate, etc. Our clients vary with each particular set of circumstances.

And it's a cake walk. Each of our projects are like "mini Olympic bids"; we just present the facts, promote the lifestyle, and bada boom: it's "London 2012" every time. Rather, make that "Vancouver 2010".

[tsuki]

7. Corporations follow the news, and one item listed by Bushco as

a neutral "tax generating" option is to close the "loophole" for companies to deduct the portion of healthcare it pays for its employees. For me, that would mean about $2600.00 a month in tax breaks for my three employees that I would have to pay taxes on.

I have no idea what it would be for a large corporation.