It seems that the Canadians are following the Americans and are also giving a bail-out package to the auto industry, a key industry in southern Ontario with a four billion dollar (canadian) series of loans. This is very similar to what the United States announced a few days ago.
This is interesting because only a year ago this would have seemed bizarre in North America – a peculiar form of government ’socialism’ that threatens the underpinings of the economic system. Of course, with banks collapsing all over the place many things are done differently. Now it is something expected – without some sort of assistance these vital and historical industries would fail.
However, the auto industry’ s problems are not linked solely with the economic crisis. Face it – American car companies make poor cars – when they aren’t wasting their time with wasteful SUVs and pickup trucks. An Audi is simply a better car than a Ford. Lately it seems that even a Kia from South Korea would be a better purchase than a Chrysler? Simply put – the American giants were losing the battle before this crisis, and it is their own fault. I can’t help but feel that the economic crisis is being used in part to help them recover from a self-imposed doom. These auto giants simply haven’t stayed competitive and have lost out to better European and Asian companies. It’s been a long time since American cars were the best.
It doesn’t really matter though, they’ll take the money and run. How much will they get next year when their vehicles fail to impress again?
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