Governments pledge $142M to Toyota

[snoop101]

http://www.ottawacitizen.com/business/Governments+pledge+142M+Toyota/5054611/story.html

I don't understand how our government can give money to a foreign company, yet our own local business struggle.

[ZenOps]

Its all linked together.

Sort of like - If you want to build windmills for electrical generation, you need Neodymium magnets.

Of which China produces 97% of Neodymium - and they stopped exporting (which has also punched up the price 400% in six months)

Globalization means sharing the resources and the capital as well. Besides... Nowadays $2 Billion will not even buy one finished US B2 bomber.

In the end game, all we do is print plastic money and get real goods in return.

http://upload.wikimedia.org/wikipedia/commons/3/3e/Zimbabwe_%24100_trillion_2009_Obverse.jpg

[snoop101]

Originally posted by ZenOps
Its all linked together.

Sort of like - If you want to build windmills for electrical generation, you need Neodymium magnets.

Of which China produces 97% of Neodymium - and they stopped exporting (which has also punched up the price 400% in six months)

Globalization means sharing the resources and the capital as well. Besides... Nowadays $2 Billion will not even buy one finished US B2 bomber.

Ok but my issue is that Neodymium can only be produced in china, but vehicles are produced all over the world. If I was going to buy a windmill then I would have to buy parts via china. If I want to buy a car I can buy any that are out there.

[Redlyne_mr2]

If anyone owes Toyota money it's the US government, they totally screwed them over in 2009-2010.

[ZenOps]

Its too interconnected nowadays.

We don't even have real refining capacity for gasoline in Canada. We ship our excess oil to the US, they refine it - and then we get gasoline back (and pay $1.something a litre, which is far above the $3.50 per gallon the US starts chokeing at)

The thousands of parts for a car require many countries and many different companies in those countries to be running. There is no such thing as small scale manufacturing anymore (and that is exactly the way it should be)

[Modelexis]

So the government is taking out a loan on our future in order to loan money to toyota to improve sales in the future, so that the citizens can take out a loan to buy the car?

A nation blinded by debt.

[Xtrema]

Wait til you see the amount of $ thrown our way for "energy" technologies.

Business as usual. Nothing to see here. Pot calling kettle black. Move along.

[Maybelater]

How does a company like Toyota get a grant like this and no other company does? Isn't this a bit unfair I am sure plenty of other comapanies can use upgrades in there manufacturing plants in Canada too.

Insuring Competition = Not in Canada. :banghead:

[snoop101]

Originally posted by ZenOps
Its too interconnected nowadays.

We don't even have real refining capacity for gasoline in Canada. We ship our excess oil to the US, they refine it - and then we get gasoline back (and pay $1.something a litre, which is far above the $3.50 per gallon the US starts chokeing at)

The thousands of parts for a car require many countries and many different companies in those countries to be running. There is no such thing as small scale manufacturing anymore (and that is exactly the way it should be)

Are these Toyota parts even being made here in Canada or is it all shipped in and getting assembled here?

Toyota has been going though so much money dealing with recalls in the last few years. If they made vehicles with quality then they would have more money to be able to put into these plants. If they don't have the money then they should shut down the plant. The government is better off paying out the employees some money then to give money to a shit company.

[Xtrema]

Originally posted by Maybelater
How does a company like Toyota get a grant like this and no other company does? Isn't this a bit unfair I am sure plenty of other comapanies can use upgrades in there manufacturing plants in Canada too.

Insuring Competition = Not in Canada. :banghead:

Start a company. Grow it to a critical size. Threaten to move operation to US or Mexico where labor cost is at least 30% less. Then see what kind money the government will be thrown your way.

[CapnCrunch]

Originally posted by snoop101
http://www.ottawacitizen.com/business/Governments+pledge+142M+Toyota/5054611/story.html

I don't understand how our government can give money to a foreign company, yet our own local business struggle.

I'm guessing that between the corporate tax Toyota pays, the GST charged on every Toyota sold in Canada, and the income tax paid by the thousands of Toyota employees, 142M is just a drop in the bucket.