Recent good news reported here about the thriving Canadian auto industry is threatened by bad news from Detroit: the US auto is in such bad shape that the big three automakers are lobbying  for a $25 billion low interest loan from the government.  Without aid, predicts the Center for Automotive Research in Ann Arbor, MI, the US economy would lose over 2.5 million direct and indirect jobs plus $100-150 billion in taxes.

Over the past few years, the Canadian auto industry has regrouped through job cuts and increased efficiency  measures.  The cost reduction efforts are expected to result s in a $155 million profit this year - even though production is likely to be down by 4.6% and revenues down 10% due to falling demand.  Improved efficiencies and cooperation from labor unions have brought projects such as the Dodge Hybrid minivan, the Nissan-Chrysler partnership, and electric car production to the Windsor horizon. By 2012, the industry is projected to earn profits of nearly $1.5 billion.

The plight of US automakers is due to slumping sales, the lowest in a decade, but the auto industry is a vital part of the world economy.   Since Canada produces many goods for US automakers, further declines in the industry would impact the local economy as well.  The research report from Ann Arbor suggests that further declines in Detroit would necessitate the involvement of Prime Minister Stephen Harper to preserve Canada's automotive sector.

For information about great places to live in Windsor, call your Prudential Select Real Estate Agent Mark Tesolin at (519) 972-5505 or visit http://marktesolin.com

For recent articles on developments in the Canadian auto industry, see A Secure Future for Windsor Assembly Jobs  and Hybrid Minivans on Our Horizon.