The Windsor Star recently published a report on how tool makers and mouldmakers in Ontario have grown nervous about taking on new work and being paid by Detroit's Big Three auto makers. According to the article, parts makers were told last week that new contracts will no longer be insured by Export Development Canada if they supply Chrysler. And Ford and GM are also being watched by the Canadian agency. The agency insures $33 million worth of contracts with Chrysler and $230 with GM and Ford.
Some manufacturers are worried that if they don't get their contract insured, they will be "wiped out" if one of the automakers goes bankrupt. Not surprisingly, many of these businesses support the U.S. government's helping Detroit's Big Three.
Executives from the auto makers are lobbying in Washington D.C. for help from the government. According to a Wall Street Journal article, the executives are defending the management of their companies and say that their need for emergency support is a result of the current economic and financial crisis and not poor decision making. They fought criticism that they haven't "done enough to restructure their companies and invest in modern, fuel-efficient vehicles," the article says.
Do you think Detroit's Big Three should receive government help? What are your concerns? Comment below.
