FIAT, the parent company of Alfa Romeo, is considering launching its return to North American soil using Ontario as its home base. So says CTV News, though FIAT chairman Sergio Marchonne has not acknowledged any talks with Ontario's government– but has set a goal of building a New World Alfa Romeo by 2012. Ontario can bank on a small home-field advantage; Marchionne was raised and educated in the Toronto area. A joint venture is possible, given that any Alfa will initially be a low-volume niche vehicle. Ford, Chrysler, Toyota, General Motors and Honda are all well-established manufacturers in Ontario. The downside: most of these Alfas are destined to be sold in the U.S. Building cars in Canada is a mighty pricey proposition. Besides, could a car built by a bunch of overall-wearin', double-double-drinkin' Toronto Maple Leafs fans named "Duggie" and "Murray" still have what pistonheads refer to as "Alfa-ness?" Che macello!

First, we're talking Chrysler Financial Canada. Second, the story in The Windsor Star omits a crucial piece of data (ironically enough): how many Chrysler customers were affected by the missing tape containing customer names, addresses and social insurance numbers. We know there's one, for sure, and he's more than a bit miffed at the delay between the Chrysler's data loss and the heads-up. "Chris Jovanovic, who leases a car from Chrysler, said the company was notified by United Parcel Service about the lost tape on Mar. 12 but a letter from Chrysler Financial dated Mar. 27 didn't arrive in his mailbox until Monday." Said letter assured Jovanovic "The data tape cannot be easily accessed and requires specialized software and equipment to read." So that's alright then. Not according to Jovanovich. "Someone who knows what they're doing could probably access the information. Nothing's that secure these days and it annoys me to think that if the tape never shows up, will we be looking over our shoulders for years waiting for the information to be used." While Jovanovich is seeing red (and a lawyer), Chrysler's no longer using brown. A spokeswoman said "after the tape went missing, internal processes were changed and the information is now sent by secure electronic transmissions. UPS is no longer used." So, bad publicity all 'round, eh?

GM Canada is going on the offensive re: its contract negotiations with the Canadian Auto Workers (CAW) union this September. They've released a "background paper" claiming the total cost (wages, pensions, benefits, etc.) for one hour's work in Canada runs the automaker $77.75. Instead of comparing those wages to other industries in Canada or "core" U.S. GM workers' ($70/hour), the paper uses the U.S. transplants for comparison ($47.50/hour). Report on Business quotes GM Canada spokesman Stew Low: "The status quo just won't do." CAW president Buzz Hargrove responded with righteous indignation. "I've told Rick Wagoner, I've told the head people at Ford and Chrysler – all of them – that there's absolutely no way in hell [we'll agree to reductions in wages, health care benefits or pensions]." The CAW says it's willing to "look at" the amount of paid time off they get. GM claims CAW employees get 155 more hours per year off and 16 minutes break time a day than… the transplants. Fair enough?

The Chevy Impala showed a 1.8 percent gain in sales in March. At the first of April, GM only had a 21-day supply on the lots. The factory in Oshawa, Ontario has been running three shifts with Saturday overtime for several months. So why are they suddenly cutting back on production? An industry source (yes, we have them too) tells us that GM's canceled Saturday overtime and laid off the third shift until further notice. Rumor has it the American Axle strike is affecting the plant; although it wasn't previously identified as one threatened by a parts shortage. The more likely scenario: Chevy's filled all its Impala fleet orders. With overall sales down 11.1 percent for the year, and the distinct possibility that Malibu sales are (as predicted) cannibalizing the Impala, GM's simply slowing Impala production to meet retail demand (or lack thereof). The sales numbers over the next few months will throw some light on the truth of the matter. We'll keep you posted.

While Standard & Poor's are planning for a seven percent slide in auto sales for the U.S. of A, things north of the border are looking up. The CBC reports that the Canadian automotive  market will nip at the heels of last year's totals (their second best year ever). The forecast comes courtesy of DesRosiers Automotive Consultants head honcho, Dennis DesRosiers. After seeing double-digit jumps throughout the first quarter, Dennis deduced an improved forecast was due. DesRosiers reckons the strong Loonie, decreased taxes (one percent G.S.T drop), and healthier Canuck economy will entice more Canadians to throw down for price-reduced whips this year. Don't figure on this news making up for the U.S. slide though. The improved forecast accounts for a mere 8k unit improvement (1.645m total).

I'll give TTAC's Canadian readers the bad news first: As the summer driving season approaches, gas prices in Canada are nearing record highs established in the wake of Hurricane Katrina. The good news? CTV reports that a recent ruling in Ontario has reversed a ticket issued to a Montreal artist who was charged with driving in unsafe car through downtown Toronto. Michel De Broin took his 1986 Buick, removed the engine, suspension, gearing, electrical systems and floorboards and replaced it all with tea-candles for headlights and a "shared propulsion" pedalling system, where all passengers in the car can contribute to its advancement by pedalling (top speed is 15 km/h, or about 9 mph). Justice Patrick Marum ruled that the Crown had failed to prove the car was dangerous, and the charges of operating an unsafe motor vehicle that De Broin faced were summarily dropped. Take that, Tata! If this ruling sets a precendent, Canada has moved ahead in the race to bring legal, zero-emissions cars to North America.

On April 1st, 2008 significant modifications to road safety regulations in the Canadian provinces of Québec and Nova Scotia went into effect. CTV.ca reports that handheld cellular phones are now verboten while at the wheel, though hands free devices are still tolerated. Nova Scotia will begin ticketing the offense immediately, while Québec has allowed for a three-month grace periods in which offenders will only receive stern warnings and moralizing sermons. The first offense in Nova Scotia will cost $165, while costing $80-$110 and three demerit points in Québec. Still not satisfied, road safety advocate Jean-Marie de Koeninck argues that "[h]ands-free is just as dangerous. (But) by forbidding the hand-held it does send a signal that there is a problem with the cellphone, there's a problem with concentration". Meanwhile, the same traffic safety bill in Québec also doubled all speeding fines , with new suspension of license provisions for those caught traveling at 40 km/h over the limit in under-60 zones, 50 km/h in 60-90 over zones, and 60 km/h over in 100+ zones. All in the name of safety, presumably.

CTV.ca  reports that John Baird, Canada's firebrand Minister of the Environment, has green-lighted a $90 million vehicle scrappage program. In essence, the objective of the program is to encourage Canadians to trade in their high-emission beaters in favor of credits on a new car. CTV notes that "[t]hese older vehicles make up just a fraction of the estimated 18 million vehicles in Canada, but they account for up to two-thirds of the pollution that causes smog." There is a current mish-mash of recycling programs in Canada, but the new legislation aims at creating a national, uniform program for beaters nationwide. Though one can't argue with the aesthetic merits of getting some of the ancient, rusted-out Pontiac Parisiennes off Canadian roads, one has to wonder about how enticing any recycling credits would really be. All of those clunkers, being fully depreciated and cheap to insure, have  very low cost of ownership, which usually (and easily) offsets any extra fuel costs. Unfortunately, specifics of the plan have not been announced by the Federal government, which makes any assessment of its effectiveness difficult, at best.

Ford confirmed yesterday that $16.5m in bribes public money from the province of Ontario was a crucial factor in its decision to reopen the Essex Engine plant in Windsor, Ontario. The Toronto Star reports that Ford says it will expand the Windsor reopening to include a further 300 jobs, but only if the Canadian federal government makes with more pork. "We are not able or willing to move forward with the second phase of the project until we can find resolution to all the issues we have outstanding with the governments," said FoMoCo group VP Joe Hinrichs. Translation: we won't add more output without more federal assistance input. For perspective, some 900 jobs were lost when the factory was shuttered by Ford in November, 2007. Naturally, CAW President Buzz Hargrove is lending his considerable extortion negotiating experience to the project, arguing that the 300 additional jobs would surely be worth a few mil in taxpayer lucre. The sad part? With Canada's manufacturing sector in the statistical scrap heap, Ottawa just might go for it.

Bloomberg reports that Ford is investing $165m in its Essex Engine plant in Windsor, Ontario.  The plant, which has been shuttered since November, will produce an unnamed new Ford engine, and will return 300 jobs to the province. The plant refurbishment was made possible by a $16.5m investment by the Ontario provincial government, or about $55k per job created. Although Ford refuses to comment on exactly which engine will be produced at the plant, timing seems to indicate that the new EcoBoost line of turbocharged, direct-injection engines could be a prime candidate. With the first EcoBoost V6 set to debut as an option on the Lincoln MKS in 2009, and planned as an option across the Ford line aimed at lowering fleet fuel consumption, this EcoBoost is a rare investment at a time when Ford is trimming its manufacturing profile. The Canadian Auto Workers have been angling for a Ford engine project for some time, although CAW President Buzz Hargrove hinted that a fuel-efficient 5-liter engine might be in the works for Windsor. Whatever the engine, this is big news for the CAW, which lost a quarter of its D3-employed membership in the last three years alone.

CAW President Buzz Hargrove has been in a feisty mood lately. After telling all of Detroit where it can stick two-tier wages, Hargrove got personal with Cerberus Capital Management, owners of Chrysler LLC. Bloomberg reports that Hargrove is irate at the three-headed hedge fund over promises its president made while seeking support for its purchase of Chrysler. Cerberus President Steve Feinberg had "promised that they weren't going to slice and dice and sell,'' Hargrove said in an interview. But with Chrysler cutting tens of thousands of jobs and slashing its model line, the CAW leader smells betrayal. "We were misled," says Hargrove, "(Feinberg's) trying to cut his way to profitability, as opposed to grow(ing) the business… (he) has never met with us since then to explain the shift in thinking." Of course, most people don't expect private equity groups like Cerberus to operate accountably, and strip-and-flip rumors have been plentiful since the Cerberus takeover. So what finally made Hargrove think that Cerberus wouldn't make good on its promises? The axing of Chryslers Pacifica CUV. Thats right, Hargrove calls the cancellation is "very concerning" because the crossover segment is hot at the moment and "they discontinued it without having a replacement." Anyone think Buzz ever looks at the sales numbers?

Stop me when this sounds familiar. Canadian Auto Workers (CAW) boss Buzz Hargrove says his brotherhood is "committed to get at the costs" that Canada one of the the world's most expensive places to build cars. Yes, well weakening Canada's currency is quite an ambitious undertaking. And "getting at" costs is one thing; reducing them another. The Globe and Mail reaffirms that Hargrove's legendary intransigence tough stance continues. Buzz' boyz won't agree to the North American template, that sees significant wage and benefits reductions for car assembling newbies. Buzz figures "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." To that end AOL Money Canada reports Buzz' boyz are strike-ready if the two-tiered wage thang becomes a sticking point. Did I say "if?"

The Financial Post reports that car prices in Canada have plummeted 6.8 percent last month, the biggest drop since 1956. The number comes from Statistics Canada's February inflation report, which reportedly shocked even the economists who collect the data. Vic Singh, chief economist at the Canadian Auto Dealers Association explains the phenomenon as an "accumulation of several months of falling prices, as the soaring Canadian dollar forces auto dealers to cut sticker prices in an effort to keep consumers from heading south of the border to get a better deal." A strong Canadian dollar, aggressive manufacturer incentives and increased demand for compact cars are also cited as reasons for the sharp downturn in prices. Of course, good old Econ 101 analysis indicates that this is what the textbooks call market self-correction, as Canucks have been paying high premiums on their vehicles for years compared to their American neighbors despite the strong loonie. Check out a slideshow comparing prices in  Canada vs. US in November, 2007 here to see what we're talking about.

The IAM has backed down, at least for now. Reuters reports that the International Association of Machinists and Aerospace Workers withdrew its bid to organize Toyota's Cambridge, Ontario plant after they found out they didn't have enough signatures to force a vote. When the IAM filed for the vote, they said they had "well over" the threshold of 40 percent of the total work force required by Canadian law to hold a vote. But then Toyota filed a modified list of employees showing they have 4,025 workers instead of the 3,100 the union claimed they had. Global Insight analyst Aaron Bragman warned "it would not be in Toyota's interests for the plant to unionize" because it could affect future Canadian investments by Toyota and the other Asian automakers. Regardless, the IAM said they'd continue their efforts to unionize the plant.

Montreal's largest French language daily has published a study on its site comparing 250 vehicles available for sale in Canada on the basis of MRSP, city fuel consumption, highway fuel consumption. Even better, La Presse published the numbers in a Microsoft Excel file where the findings & methodology are bare for all to see, giving full license to challenge the article's findings.  (Imagine Car & Driver or Consumer Reports doing this!) For example, the study's author, Canadian auto-journalist Alain McKenna, states that American cars top the study by having the lowest operating cost per year. When I sorted the file, I noticed the top three cars were The Chevrolet Aveo, the Pontiac Wave and the Suzuki Swift+. If by "American", he means "Captive Korean imports badged by General Motors", I suppose he has a point. He also fails to consider depreciation and maintenance expenses, which tend to be much higher on domestics. Still, it's quite an interesting spreadsheet to review if you're a numbers geek like I am. McKenna also points out that some of the cheapest vehicles are not what you'd expect, noting that three pick-ups, The Ford Ranger, Chevrolet Colorado and the Mazda B2300, all beat out the Toyota Prius. Speaking of the Prius, where did it end up? In 67th place, just edging out the V6 Mustang by $0.04/100 km of operation.