TORONTO — Ontario PC Leader Patrick Brown is warning the province could face manufacturing plant closures in the auto sector unless the provincial government addresses higher energy and regulatory costs.
“If government continues to put additional weights on the backs of business, I do think it’s a distinct possibility,” said Brown.
“I’m hopeful that we can avert plant closures but it’s something we should all be aware is potentially on the horizon.”
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Brown made the comments after a meeting between Sergio Marchionne, CEO of Fiat Chrysler Automobiles, and Premier Kathleen Wynne last week.
Marchionne told Wynne that proposed environmental measures like ‘cap and trade’ have a price tag that will add to the cost of building cars in Ontario.
Higher costs makes it more expensive to manufacture industrial products and harder for companies to compete.
A spokesman for Brad Duguid, Minister of Economic Development, Employment, and Infrastructure, denies the province is losing ground.
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“Recently we’ve seen major new investments in Ontario, including $2 billion alone from Chrysler, and an additional $2 billion from General Motors, Honda, and Ford,” said press secretary Andrew Forgione.
Despite those assurances, there are growing fears the province’ competitiveness is slipping after Ontario lost bids for multi-billion dollar auto investment projects that would have created thousands of new jobs in the auto industry.
Windsor Mayor Mayor Drew Dilkens echoed Chrysler’s warnings and said he’s concerned about government measures hurting the province’s ability to attract investment.
He pointed to the fact both Volvo and Jaguar Land Rover recently rejected Ontario in favour of building plants in lower cost jurisdictions in the U.S.
Brown says it wasn’t long ago Ontario could compete for manufacturing investment with anyone in the world but is now losing jobs, not only to the U.S and Mexico, but also to other provinces including Quebec and Manitoba.
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