Ontario's High-Octane Auto Industry Looks to "Floor It!"

A headline on CTV Newsnet Friday night, and its accompanying story on Sympatico's website (both part of Bell Globemedia) highlighted the growing strength of Ontario's auto industry. Ontario now produces more cars and light trucks than any other province or state. And more may be coming. Toyota is looking to build a new plant in North America, and apparently southwestern Ontario, specifically the city of Woodstock, is at the top of the list of potential sites. This would seem rather logical in light of the presence of their other Canadian plant in Brantford, a short drive away, as it would open the door to greater logistical efficiencies.
Another reason for optimism is the newfound willingness of the provincial and federal governments to offer serious cash incentives to companies looking to locate or expand facilities. This has apparently helped move Ford and GM to expand their production facilities in the province, with GM in particular making a major investment which could see vehicles designed from the ground up at their Oshawa headquarters.
Now, as a general (no pun intended) rule I dislike corporate welfare. While the argument is often made that the jobs produced wouldn't come here otherwise, there is reason to believe that they might indeed. The CTV/Sympatico article points to the financial benefits to companies locating here, specifically the presence of a healthcare system paid for from the public purse, when healthcare costs in the US are in large part responsible for the poor financial situations of the big three North American automakers.
Having said all that, there could be a use for these subsidies. They would make sense if they were used to leverage more out of an automaker than otherwise possible. Set the GM deal as the standard - no government money without design and other ancillary facilities on top of any assembly plant. The presence of design facilities provides Canadians with an opportunity to build an auto industry with a real sense of Canadian needs and wants. The net benefit to the Ontario and Canadian economies would increase dramatically, making for a real payoff, versus an imaginary one otherwise.
Lets use government subsidies as the lever that will move the automotive world.

Sincerely,

James P