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| Ford of Europe's Mondeo, built on an updated version of the platform once shared with the axed Contour, will also be produced in China. (Photo: Ford Motor) |
But what to do? A solution is only needed if a serious problem really threatens, but that said reactionary choices could be bitter pills to swallow. For instance, the protectionist route of raising import duties on product imported from certain countries is negative to the very core of our economic fabric, raising domestic retail prices and limiting the numbers of certain vehicles. Obviously there would be no reason to react if the models in question weren't selling well, meaning that any cars affected would no doubt be popular among consumers.
A more positive solution is to lure auto manufacturers to Canada via tax incentives and various regulatory breaks. While this can create jobs it's hardly fair to other industries that struggle to survive without government handouts. Still, the carmakers will go where the opportunity is ripest, and Canada is quickly becoming less and less advantageous despite our low dollar and highly skilled workforce.
Another solution is to sit back, relax and roll with the punches, which is what it seems our current Liberal government is doing. It is possible after all that our current downturn in Canadian auto production is just cyclical, another wave will come by if we just wait it out long enough. It's also possible that no amount of government manipulation will dramatically change the fact that a global shift in manufacturing is taking place, and that we best get ready to facilitate the world's needs in some other capacity, so that we don't become completely redundant. Truly when push comes to shove, we might still want to have a few coins to rub together, enough at least to buy a new Chinese