Federal budget to signal broad support for auto makers
The federal government will signal new support for Canadian auto makers in Tuesday's budget in a bid to keep car plants and the jobs they support in Canada, CBC News has learned.
Currently, Chrysler is deep in negotiations with Ottawa and the Ontario government to kick in up to $450 million of a proposed $2 billion upgrade to its minivan plant in Windsor, Ont.
- Auto industry fights Canada-Korea free-trade deal
- Jim Flaherty targets youth joblessness, price gaps in budget
- Federal budget to boost rural high-speed internet access
Although the budget will not specifically mention Chrysler, multiple sources tell CBC News that it will signal broad support for auto makers as a key driver of the Canadian economy.
CBCnews.ca and CBC News Network will have complete coverage of Budget 2014 on Tuesday, starting at 3 p.m. ET.
Join us online for a live chat and streaming video of CBC News special coverage, with the finance minister's speech, full budget details and streaming video of CBC News special coverage with Peter Mansbridge and Power & Politics host Evan Solomon at 4 p.m. ET.
The Conservative government has already earmarked $250 million under the Automotive Innovation Fund. The budget will signal additional investments in the future.
But sources also tell CBC News that these signals of additional support may also be an effort to placate the auto sector and its unions, who are strong opponents of a Canada-South Korea free trade deal. The auto industry fears the deal would lead to an influx of imports from the Asian country.
Their opposition is the most significant obstacle to securing a deal that would remove tariffs on goods ranging from agricultural products to manufactured goods.