Auto Makers Get Cash for Working in Canada | Automotive Training Centre

Did you know that this year Canada is investing $254 million into the auto industry? That’s roughly the retail cost of 17,000 Honda Civics, which is currently the best-selling car in Canada.

But, before you go to sign up for your share, there’s a catch. The only people or companies qualified to get a piece of the money must have invested at least $75 million into the Canadian auto sector. So far Toyota, Ford, Magna and Linmar have signed on, for a total investment, between their money and our money, of $1.6 billion.

You may be wondering why the cash is necessary and how it’s going to affect automotive careers. That $254 million is actually a renewal of an investment scheme from 2008, back when the economy started looking dubious and everyone started worrying if we needed to call it a recession or not.  And it’s certainly been grim! In the auto manufacturing sector, where all this cash is going, Canada went from being the fourth biggest manufacturer of cars to not even making it into the top 10.

Some of this is a normal side effect of an increasingly global economy, but part of keeping things local is a matter of making yourself into an attractive location. Sometimes it’s providing a good work force, either a cheap one or an educated one. Canada obviously can’t compete by being cheap (you didn’t sign up for your dispatcher courses and auto technician training to work for peanuts) so in addition to offering a well-trained work force, cash incentives like this keep major auto companies from uprooting.

The idea is to pay into auto companies now and see a dividend down the line, when they pay back out into the Canadian economy over the coming years, by keeping auto manufacturers employed.

Do you think it’s worth it? And if you do, what other ways can we keep cars being made at home?

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