Thursday, March 12, 2009

Nationalizing Chrysler

What a mess. Chrysler thinks they have a "gun" to our heads. I am not for bailing them out - as I've posted before, but I think there are other answers.  

While "nationalizing" the company is not really "do-able" (they are AMERICAN companies, and NOT CANADIAN - no matter what the bs public opinion and AutoPact says), we can "nationalize" their factories. Considering there is already a "dispute" with how they do business, and monies owing to us - the people of Canada - here's what I propose:  

1) Wave bye-bye 

2) Keep factories, and take over employee pensions and salaries 

3) Go to Korea, Japan, or China (or EU), and find a manufacturer which will help us "re-badge" a made in Canada small fuel-efficient pickup, and a fuel-efficient mini-van (companies do this all the time). We could "rebadge" the original mini-van - the Renault, and maybe a diesel version of the Toyota Hilux These two types of vehicle are needed in Canada, and would be ideal vehicles to start a new Canadian company with. Canadian pride would help keep the company sales going. Heck, I would buy the "Hilux" in a second (I drive it's North American cousin - the Tacoma). 

4) Introduce one very, very GREEN vehicle into the mix - maybe the Zen from Quebec, or other small electric, and approve it for cross-Canada sales. 

5) Provide incentives to buy Canadian, and start removing ourselves from this current "AutoPact", and move towards a similar agreement with Japanese or EU companies.

The amount of money we've poured into the Big 3 is a sin. It is also a good down-payment on their plants in Ontario. Imagine the Ontario and Federal government coming together and creating a "national auto company". We did a similar thing creating Petro-Canada. India created "Maruti". Both highly successful companies now.

More on this later.

Edit: Note, there is a HUGE opportunity to have the unions involved in a purchase of the facilities, and basically have a "union buyout" situation, where the unions could own the company - the "new" company.

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Comrade One said...

I agree. I would be looking for a hybrid driveline deal with one of the majors as well to introduce in the Zenn or like vehicles.

An injection of capital of that nature would be a huge boost while they wait for the estor technology to be perfected.

The goal should be to privatize any companies born directly out of the exit of Chrysler or GM though. Long term government ownership would turn into another boondoggle event.

WesternGrit said...

Certainly privatize them later - when the company is established and making a good profit.

This company would be the "green leader" in Canada - and the world. A platform for testing and launching the greenest vehicles in the world.

When new "green" transport ideas come up, this company could carry them forward. This could even include "green" trains, lrts, etc.

Imagine the benefits for Canada's environmental industry, parts manufacturers, etc. Companies like Magna, Zenn, Ballard, etc., would be fostered to grow and support our first indigenous auto...

Our universities and research centers of excellence would also benefit in a huge way. It is a "win-win" for all Canadians and Canadian businesses.

We may even get the unions involved in the take-over. I think there is even space for a "heavy truck" to be manufactured - to replace Navistar/White...

Comrade One said...

I do imagine, and I agree.

These things are not without challenges of course. Not the least of which being overcoming the notion that we are not capable of being more than an arm on a space shuttle.

With our current leadership, we can't hope for much more than that. With a cohesive effort of old and wise, and young and empowered, we can be better.
Certainly, we can build, and we can market.

While the stimulus money is being spread around, we should ask why some wasn't directed towards Ian Clifford's Zenn? Zero Emissions No Noise Electric automobile.Why don't we support innovative entrepreneurial Canadians?