Friday, January 11, 2008

Ford calls on Ottawa to revive Windsor plant

Ford calls on Ottawa to revive Windsor plant


Globe and Mail Update

January 11, 2008 at 12:30 AM EST

Ford Motor Co. has asked the federal and Ontario governments to kick in $60-million to support a $300-million plan to reopen a shuttered engine plant in Windsor, Ont. – a request that has become a key test of whether the Harper government will provide financial aid to the auto industry.

“I understand that the project won't go ahead without Ottawa,” one industry source familiar with the proposal said Thursday, adding that Ontario has already agreed to come up with its $30-million share.

The previous federal government under the Liberals provided several hundred million dollars to help land new investments in Ontario by Ford, General Motors Corp., Toyota Motor Corp. and others, but this is believed to be the first request the Harper government has received.

The Ontario government has a $650-million fund that is available to companies that provide jobs manufacturing new, environmentally friendly technologies in the province.

Industry sources said Ford has proposed assembling a new V8 engine at its Essex Engine Plant.

The plant had been making V6 and V8 engines, but closed in November after operating since 1981.

Complete story at the Globe and Mail