Last time we checked in on the Oshawa closure debacle, a GM spokesperson was calling the CAW blockade "understandable." After nearly a week of being barred from Oshawa by angry CAW workers, GM has lost its sense of empathy. The General is asking for a court injunction to end the protest. The Detroit News also reports that although CAW understands why GM wants their 250-car blockade of Oshawa removed, The General's request for $1.5m in damages from the Union comes as a bit of a surprise. Neither side likes the other, and both feel betrayed, so why is GM trying to squeeze an extra million bucks or so out of the situation? GM has said the blockade caused it to lose some production. With cash burning and nothing to gain in Oshawa, well, why not get that back from the union? For CAW, this is just more insult on top of losing the Oshawa plant. In short, this is the desperate squabbling with the short-sighted over the few remaining scraps of a once-healthy relationship. Cheery stuff.

Canadian finance minister Jim Flaherty awakes!. After years of ignoring calls from Ontario's Premier Dalton McGuinty to subsidize Ontarian jobs, brushing off accusations of inaction vis-à-vis the steady outflow of Ontario's manufacturing jobs to lower-cost areas, Flaherty could hold back no longer. Call it a Shakespearean twist of fate, but of all of the 308 electoral districts in Canada, Flaherty has the misfortune of representing the federal electoral district of Whitby-Oshawa, right where GM Canada lives– the epicentre of Ontario's ailing manufacturing. Flaherty opened the newsday by announcing a $250m bailout of GM Canada. Except he didn`t call it a bailout. CBC reports the Flaherty will make money– set aside under an "environmental investment fund"– available to GM to help it pursue green technology. The move, another possible knee-jerk reaction to the closure of GM-Oshawa, has caught even Dalton McGuinty by surprise. (Dalton hasn`t decided whether to be pleasantly surprised or to, in typical provincial fashion, say it is not enough. Though the conditions of the deal aren't finalized,) Flaherty hinted heavily that the money should be used to replace truck production by smaller car production. Well duh.

Canadian Auto Workers (CAW) union officials are meeting with "top GM officials" about closing the Oshawa, Ontario truck plant. After CEO Rick Wagoner's announcement that The General's terminating Oshawa production– along with three other plants– workers blockaded GM headquarters. The Detroit News  reports CAW president Buzz Hargrove supports the blockade. Hell, he won't "rule out" the possibility of a strike. Buzz says the Wagoner's announcement was "an insult" as it's been just two weeks since the company promised workers the plant would be open at least until 2011 (what happened to 2010?). GM spokesman Stew Low says the protest is "understandable." I'm sure that really made the workers who are losing their jobs feel better. Maybe next, GM will offer them a spot of tea to go with that sympathy. But don't count on GM changing their plans to ship work from that plant to cheaper ones in the U.S. and Mexico.

One knee-jerk reaction begets another. As reported yesterday, the Canadian Auto Workers (CAW) wasn't over the moon over the announced closure of GM's Oshawa truck plant. Note: Oshawa IS General Motors. Chevrolet's had a plant in the city since the early 1900s, before Oshawa itself was incorporated as a city. The local hockey team is named for GM. GM-Oshawa employed 2600 direct workers, and no doubt accounted for thousands of other peripheral jobs. So when GM CEO Rick Wagoner sounded the plant's death knell, the CAW's members immediately declared war. Today, CTVNews reports that defiant CAW members, fueled by a desperation that only comes when one has nothing to lose, are blockading the offices until further notice. There's no news of reactions from workers at the other Oshawa plant where they build Chevy Impalas and Buick Lacrosses/Allures. Meanwhile, Toyota and Honda, just as recently as last month, announced billion-dollar investments in Ontario. Hyundai/Kia is also considering moving in. Of course, we all know this story, don't we? Soon, Ontario will be another theatre of war that The General will cede to the Asians, during its long, tragic descent into oblivion.

As you can imagine, GM's decision to close their Oshawa truck assembly plant in Ontario, Canada doesn't set well with the Canadian Auto Workers (CAW). "It's nothing short of betrayal," CAW Oshawa branch president Chris Buckley told Reuters. "General Motors is going to produce our truck in Mexico and the United States. That's absolutely disgusting." If he's looking for the real betrayal, he should think back to the contract negotiations in May, when CAW president Buzz Hargrove took a hard line stance against contract concessions, making Canada the most expensive place in North America to assemble cars. Or recall Buzz' statement that "It's my last set of negotiations and my legacy is not going to be that the sons and daughters of current workers that were hired over 20 years ago are going to come in at the same rate in 2008 as their parents did in '86 or '87." It now looks like Buzz' legacy will be unemployed sons and daughters of current workers thanks to his inflexibility driving production out of Canada and back to the lower-paid hands of the UAW and Mexican auto workers. Just sayin'.

Since it began, TTAC has called on all automotive publication to publish disclosure of all manufacturer-provided travel, lodging, food and gifts. The worst offenders: car sections of local newspapers. And no wonder; they remain one of the few profitable portions of many otherwise failing publications. To wit: Joe Clark's [Fawny Blog] take on the Toronto Star's Wheels section. Calling Wheels "a giant moneymaker" for the paper, Clark links to an editorial where the paper agrees that "accepting free travel to preview cars is not ethically or journalistically sound." So  no car junkets, right? Wrong. The Star simply hires freelancers and "outsources unethical behaviour." A quote from freelancer Ted Laturnus in an article in the Ryerson Review Of Journalism says it all. "All I can say to the people who think we shouldn't be taking free trips is, 'Go fuck yourself. Come back to me when you've grown up.' They don't know the side of reality to this business. I do. I've been in it for 20 years. I have no patience for that sorta thing. It's the way the game is played." Note to Ted: we're here to change the rules.

According to The Star [via Wheels.ca], Canadian new-car sales rose a bit over nine percent vs. the previous financial quarter. This represents the strongest single-quarter sales gain since way back in the middle of 1998. Analysts attribute the growth to lower prices, incentives and a one percent reduction in the goods-and-services tax (GST). The largest gains (17.8 percent) came from sales of passenger cars. Meanwhile, driving.ca reports on April sales, noting that GM's share of the Canadian pie slipped 13.5 percent. GM said "the drop was a planned reduction in low-profit sales to daily rental fleets." The company spun the news by pointing out that retail sales of The General's passenger cars went up by 23.8 percent in the month of April. Anyway, Ford's Canadian sales slipped by 4.5 percent last month. Winners include Chrysler, up eight percent in April, thanks to a 38 percent increase in the number of minivans driving off the lots. Chrysler Canada adds that it enjoyed its 21st consecutive increase in monthly sales, noting that (just like GM), the company deliberately cut back on fleet sales. Not bad, eh?

CTVNews reports that the Canadian Auto Workers (CAW) has reached deals with both GM and Chrysler for its Ontario members. The agreements mirror those that the CAW obtained from Ford. According to the official story: "Workers will see their wages frozen for three years in exchange for improvements in other areas." "Other areas?" Such as not getting fired in the first place? The crux of the deal: Buzz Hargrove successfully delayed the inevitable. GM-Oshawa's planned shift reduction is put off until 2009, and Chrysler's Etobicoke plant, on death row for over a decade, will have its life extended to 2011. Hargrove is spinning the wage freeze as a victory, noting that he's "done the very best to protect as many jobs as we could and protect and support people who won't have a job"– despite failing to secuire long-term plans for either of the two plants. We now return you to our regular discussion of American Axle's ongoing strike.

Canada (like most other developed countries) has a hard time attracting/keeping auto manufacturing jobs due to high labor and tax costs. To counteract these competitive disadvantages, provincial governments often offer car companies tax holidays and other incentives. The problem with these handouts is that they do not guarantee a long-term presence by the bought-off manufacturers. Exhibit A: GM got handouts worth nearly $250m in provincial tax money (and about $200m in federal funds) for its Beacon project aimed at revitalizing its Canadian production facilities. Now, a few short years later, they're cutting some 1400 jobs at their Windsor transmission factory, with another 900 lost due to production cuts at the Oshawa truck plant. Having spent some $7b on various automaker subsidies without receiving a single job guarantee, Ontario Premier Dalton McGuinty is coming under fire. "The more money this government invests in a company, it seems the more jobs are lost," says Progressive Conservative MPP Bob Runciman. But McGuinty ays he "doesn't regret" giving the money to GM (at least until the next election). Report on Business tells us that GM is set to ask the Ontario government for another $140m to build transmissions at its St Catharines plant. Oh, and don't expect GM to offer any job guarantees, either.

CTV reports that General Motors is closing its transmission plant in Windsor, Ontario by 2010. The plant currently employs 1400 workers producing ye olde four-speed automatic transmission. GM Canada's Stew Low offered an explanation that made no mention of a warning shot over the Canadian Workers Union (CAW) bow, in advance of contract negotiations. "With the dynamic of our changing portfolio, there just wasn't a new transmission to put into there." Translation: four-speeds are so 1939 and you guys cost too much. The announcement caused some political scuffles. The provincial (left-leaning) NDP party implored Ontario Premier Dalton McGuinty to step in and stop the rampant job losses in the automotive industry. As The Big 2.8 have shuttered plants and moved production to cheaper jurisdictions, investments from Asian automakers have not risen to produce employment break-even. It's a shame too, since Windsor was on a roll. On the plus side, given Ontario's more diversified economy, it appears it can shelter a contraction of the NAFTA-zone's automotive industry with less pain than Michigan. But, unless a career at GM provides a good stepping stone to working on Bay Street, that won't soothe any of the CAW members' worries.

Last year, the Canadian government initiated an "aggressive push" to produce fuel from crops. The 2007 federal budget included a C$2.2b support package for biofuels. According to a report in the Globe and Mail, "political consensus in favor of biofuels is suddenly breaking down." Member of Parliament (MP) Keith Martin thinks it's time to step back and "put a moratorium on it now so people can actually wrap their heads around the facts; the current biofuel strategy is deeply misguided." The president of the Canadian Renewable Fuels Association claims "the issues that come up have nothing to do with food supply."  Gord Quaiattin says concerned Canadian should blame rising oil prices for food costs. "Everybody's screaming about 'food for fuel'; it's too bad we can't have a rational debate in this country," sighs MP David McGuinty. Still, it may be too late to shut the door: the government has poured billions into a biofuel facilities fund. Fourteen plants are running already and six more being built- so this horse may have already left the barn.

The Detroit News reports that GM will be cutting one shift from its Flint, Pontiac, Oshawa, Ontario, and Janesville, WI factories by July 14. The slashing eliminates some 3,500 jobs from GM's North American workforce. The move eliminates produciton of some 50k body-on-frame vehicles– which have already fallen 100k due to the ongoing American Axle strike. Analyst Joe Phillippi of AutoTrends Consulting says this is gonna leave a mark. "These are the most profitable things they make, and losing those profits is going to hurt for the next three quarters." Still, there's no point in building 'em if nobody wants to buy them; GM has seen a 17 percent decline in pickup sales and a 29 percent drop in large SUVs in the first quarter of this year. Sure, cutting makes the powerless feel like they're in control, but until GM goes "down the road, not across the street," expect the misery and moodiness to continue.

Here's another one for TTAC's new Whisky Tango Foxtrot category… Ontario's new anti-street racing laws were enforced for the first time when a garbage truck was clocked doing about 70mph in a 40 mph zone. The Record reports that the Great Lakes Waste Management truck would be impounded for seven days, and the driver's license suspended for a week– on top of a $2,000 fine for street-racing. The citation has caused the Ontario police to expand its investigations into alleged street racing beyond the initial targets ("young men in cars," surprise, surprise). Their undue diligence now includes commercial vehicles. "The more we apply this new legislation, we're seeing this problem is across the board," says Ontario Police constable Joanna Van Mierlo. That, or garbage truck drivers are far more dedicated to time efficiency than previously thought. Talk about going like stink! [thanks to QuasiMondo for the link]

As billions pour into projects aimed at making the Canadian prairies the world's largest exporter of crude oil, supposedly insulating Canada from an American economic downturn, two major Canadian news sources foreshadow a gloomy future for The Great White North. Canwest News (via Canada.com) quotes a study conducted by CIBC World Markets (the investment arm of the Canadian Imperial Bank of Commerce) that suggests oil prices could surge to $225 per barrel by 2012. That would push Canadian gasoline prices to about $2.25/L (or about $8 gallon at current exchange rates). According to Jeff Rubin, World Market's chief economist, oil supplies are static; demand isn't. "[For] every extra driver that gets a car and goes on the road in those (developing) countries in the next five to six years, somebody's having to get off the road in the OECD countries." Meanwhile, Montréal's La Presse ran the results of a study conducted by energy analyst and longtime doom-and-gloomer Patrick Déry. He predicted Peak Oil's (long-awaited?) arrival in 2018; Québec and other net importers of energy will run out of oil supply by 2030.