Ford (NYSE:F) is seeking hundreds of millions from both the Ontario and Canadian Governments to retool the Oakville Ontario plant. The idea is to assembly Fords on the new CD4 platform. This will allow the plant to more easily switch production from model to model as they react to marketing demand.
The Ontario and Canadian Government have a history of coughing up this kind of cash. In all honesty some desperate state governors have done the same. Lots of Republicans engaging in socialist style incentives. Big advantage for Oakville is government health care which US states cannot even come close to matching.
Interesting that the US business media did not really focus on the story.
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post. I have no plans to initiate new positions within the next 72 hours.
- Ford looking for government aid to retool Ontario plant (theglobeandmail.com)
- Canadian Gov’t Gives $4 Million to ‘Too Human’ Studio [Coroporate Welfare] (kotaku.com)
- Two Ontario Toyota plants to get $545M makeover (ctv.ca)
- Ottawa, Ontario pledge $141.6M for upgrades to Toyota Canada plants (windsorstar.com)