UPDATE: Canada Government To Invest C$145 Million In Auto-Sector R&D
16 April 2009 - 5:07PM
Dow Jones News
Canadian Industry Minister Tony Clement on Thursday unveiled the
Automotive Partnership Canada, a C$145 million (US$121 million)
initiative to strengthen research and development in Canada's
automotive sector.
Clement said the funds, which come from the 2008 budget, will be
used to support research in 10 key areas, including energy storage,
advanced power train, alternative fuels and vehicular software.
The goal of the program is to stimulate research on automotive
technologies that reduce environmental impacts and increase
manufacturing efficiencies.
At an event in Toronto, Clement fielded a number of questions
from reporters about the Canadian government's support for Chrysler
LLC's (C.XX) Canadian operations. He said the "clock is ticking,"
with the auto-maker having until the end of this month to reach
agreements with both the Canadian Auto Workers union and Fiat SpA
(F.MI) in order to get additional financial support from the
Canadian government.
He noted that Fiat has indicated that its investment in Chrysler
is dependent on the car maker obtaining further labor-cost
concessions from the CAW. Fiat is looking for Chrysler to bring its
hourly costs in line with those of Canadian plants operated by
Toyota Motor Corp. (TM) and Honda Motor Co. (HMC).
CAW President Ken Lewenza this week rejected Fiat's call for
more cost concessions, and said the Canadian union aims to be
cost-competitive with the unionized plants of North American auto
makers. He has also repeatedly said his union remains committed to
pattern bargaining, and won't agree to more cuts at Chrysler than
it has already agreed to with General Motors Corp.'s (GM) Canadian
unit.
Clement said Thursday that, in order for Chrysler to survive in
Canada, it must be cost-competitive with the rest of the Canadian
market, which includes Japanese auto makers.
"We're beyond pattern bargaining," he added.
-Carolyn King; 416-306-2100; AskNewswires@dowjones.com