Tuesday, August 29, 2006

WILL THE CAW "ST. THOMAS" PLAN SLAY THE PANTHER?

Automotive News has reported that the Canadian Auto Workers union has proposed a "blueprint" for keeping the St. Thomas, Onterio, plant open while Magna International builds and operates a"low-cost entry-level vehicle" asssembly plant for Ford Motor Company near by.

CAW President Buzz Hargrove said "the 'Way Forward' plan of Ford included a plan to build a new plant for low-cost, entry-level vehicles, so we put together a proposal that would put Canada in the running with the United States and Mexico. . . We didn't want to wait. In today's environment we have to be more more aggressive in terms of pursuing these kinds of opportunities."
St. Thomas and Wixom, Michigan, have split production of the full-sized Panther since 1984, with St. Thomas being the exclusive source for Ford Crown Victoria, Ford Police Interceptor and Mercury Grand Marquis.
Wixom, of course, is scheduled to be put down next year as the V8-powered RWD Town Car is slaughtered in favor of the ill-conceived, Volvo-based near-luxury six-cylinder FWD/AWD Lincoln MKS (a/k/a the MistaKeS).
Thus, the new CAW plan may or may not spell potential doom for the only traditional "American" sedans still made.
Magna International has repeatedly offered to build cars under contract for an OEM, so it's not surprising that the CAW is jumping on that offer as a way to make St. Thomas more attractive.
And the Canadian government paid dearly to lure the new Holden . . . Chevrolet Camaro back to Canada (GM's Oshawa, Ontario, plant will get a reprieve at a cost of "$667 million (Canadian $740 million) makeover, saving roughly 2,700 jobs.")
The CAW blueprint for St. Thomas likely includes similar taxpayer-funded incentives.
Given the slash-n-burn acceleration of the "Way Forward" and FoMoCo's apparent directionlessness, the CAW was wise to prompt Ford with a "Bold Move" of its own.
Let's just hope that the Panther doesn't get snuffed in the process.

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