Harper to Aid Ontario’s Ailing Auto Sector

(Globe & Mail)

The Harper government will move to shore up its economic credentials in hard-hit and vote-rich Ontario today by doling out cash to key Detroit auto makers just days before an expected election call.

Prime Minister Stephen Harper will announce in Windsor, Ont., that his government will offer financial support to Ford Motor Co. of Canada for an engine plant in that city. He is expected to follow that up within days with money for a General Motors of Canada Ltd. transmission plant in St. Catharines, Ont., auto industry and government sources said yesterday. Sources said the government is also preparing announcements for other sectors.

Industry Minister Jim Prentice will join Mr. Harper in Windsor at Ford's Essex engine plant. The combined amount for the two companies could be as high as $200-million, sources familiar with the Ford and GM proposals said yesterday.

The money is expected to come from a five-year, $250-million fund announced this year for green initiatives. The government has not provided funds to any specific company since it was elected in 2006. Read the complete article.

Update: More on the announcement here.