Speaking Points

The Honourable Jim Prentice, PC, QC, MP
Minister of Industry

The Launch of the Ford Flex

Oakville, Ontario
June 3, 2008

Check Against Delivery

Thank you for your introduction, and thank you, ladies and gentlemen, for this opportunity to join you for the launch of the all-new Ford Flex.

This is an exciting new crossover vehicle, and the timing for its arrival on the market could not be better. It's been a particularly tough year for the industry, with a slowdown in the U.S. market, a high Canadian dollar and consumer tastes responding to record high prices at the pumps. We have also seen plant closures and layoffs across the industry.

But here in Oakville, on the other hand, Ford is hiring. This is the third new Ford vehicle to be launched at the Oakville Assembly Complex since the Government of Canada invested $100 million in the Centennial Project. The Ford Edge and Lincoln MKX have both proven to be very popular. And I certainly welcomed the news that now that the Flex is going into production, Ford is hiring 500 new workers at the Oakville complex, bringing the total employment to more than 4300.

The success here in Oakville underscores the capabilities of the Canadian automotive sector. It has been Canada's largest manufacturing sector and a key driver of innovation in our economy. The Canadian industry is renowned for its quality and high productivity.

But the industry is facing major challenges. Not just the challenges of higher gas prices or a market slowdown in the U.S. In addition to these, we have profound, structural changes. Global production of the automotive sector is moving to emerging markets, such as China and India, following demand growth there.

And the global race is on to produce vehicles that emit fewer greenhouse gas emissions. For the first time in history, the Canadian auto industry will face regulated fuel consumption standards.

Earlier this year, our government took a first step and announced that the Canadian auto industry will face regulated fuel consumption. As part of our Turning the Corner environmental plan, regulations will apply to new cars and light trucks starting with the 2011 model year.

We want Canada not only to persevere when faced with challenges, but also to respond to these challenges and remain at the forefront of automobile production. We want Canada to attract the kind of investment that comes when a company like Ford demonstrates its confidence in the Oakville Assembly Complex.

That is why the Government of Canada has launched a comprehensive and integrated framework for the industry that will keep it strong for generations to come. Last winter, I announced the four pillars of our new approach to positioning Canada's automotive sector.

First, we will sustain a fiscal and economic framework that will keep the industry competitive. This is our long-term economic plan — Advantage Canada. For example, we are providing more than $1 billion in tax relief for the automotive sector through lower federal corporate taxes and higher write-offs for investment in machinery and equipment.

Second, we are actively pursuing an integrated North American auto sector. At his meeting with President Bush and President Caldéron last month, Prime Minister Harper agreed on ways to improve the North American auto industry. We need to remove the impediments to cross-border flow of goods and services. To do this, we will improve border infrastructure and improve our border security so that vehicles and parts can move easily between Canada and the United States. We are determined to improve the Windsor–Detroit border crossing and recently announced a $1.6‑billion investment to improve the link between the new bridge and Highway 401.

Third, we are supporting science and technology. Yesterday I was in London, at the AUTO21 conference, where we helped announce the approval of 54 new AUTO21 research projects. There is some very exciting research and development going on in Canada right now to build the car of the future, and we are making sure that industry, universities and other research institutions work together to bring that innovation from the laboratory to the assembly plant, and right to the factory floor.

And as a fourth pillar, the government is moving quickly to put in place a $250‑million Automotive Innovation Fund for greener and more fuel-efficient vehicles. The details of this fund will be available in the coming weeks. We recognize the strategic and economic importance of the auto industry. We are committed to maintaining its competitiveness.

Ladies and gentlemen, the launch of the Ford Flex gives me every confidence that we are on the right track. We have a strong automotive industry. It's adjusting to new market realities. It's showing itself very capable of anticipating what the public will want and responding to new environmental challenges.

I wish Ford and its workers every success with this new vehicle. Let it be a symbol of our pride in Canadian manufacturing excellence.

Thank you.