CAW Applauds Federal Government Move to Guarantee Warranties, Money for Parts Firms
April 8, 2009, 8:55 AM EST
CAW President Ken Lewenza commended the federal government for its pledge to guarantee the warranties of Chrysler and General Motors vehicles and provide additional funding for auto parts suppliers, as announced earlier today by federal Industry Minister Tony Clement.
The move follows a similar announcement by U.S. President Barack Obama last week.
"This is a very encouraging sign that the federal government understands the necessity of a multi-pronged approach to revitalizing the auto industry," said Lewenza.
The additional monies to Export Development Canada for accounts receivable insurance to auto suppliers in the case of non-payment will hopefully mean that fewer auto parts companies will be shuttering plants and throwing thousands of people out of work, hollowing out communities, said Lewenza.
Lewenza also encouraged the federal government to consider an auto scrappage incentive program, an initiative that was included in the Obama auto announcement and has had great success in Italy, Germany and other auto-producing countries. A scrappage program provides an incentive to turn in older, more polluting vehicles in favour of purchasing new ones.