Oakville Beaver, 12 Dec 2008, p. 10

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10 - The Oakville Beaver, Friday December 12, 2008 www.oakvillebeaver.com Local auto dealers urge governments to support Big 3 By David Lea OAKVILLE BEAVER STAFF As Ottawa and Ontario mull over a possible $6.8-billion stimulus package for North America's Big Three auto manufacturers, Oakville car dealers, associated with the group, are weighing in on why they feel the industry desperately needs this assistance. Oakville Chevrolet General Manager Hass Hijazi noted that before anyone condemns the request, which the Big Three made to the federal and provincial governments earlier this month, they should understand that what's being proposed is not a U.S.-style bailout, but rather a series of loans and credit lines. "They're not looking for a handout here, they're looking for a loan to get them through a difficult time brought on by the economic flavour of today," said Hijazi. "This isn't happening because all of a sudden everybody has realized they don't want to buy a domestic car." David Sanci, Principle dealer of Oak-Land Ford, agrees with this assessment noting that any taxpayer money invested in the auto industry during its time of need will be returned. "If that loan goes through, they will get paid back in spades," he said. "All it is, is cash flow to get us through this because you can't "They're not looking for a handout here, they're looking for a loan to get them through a difficult time brought on by the economic flavour of today." Hass Hijazi, Oakville Chevrolet general manager borrow money right now." Sanci also noted the government will get even more back if it counts the taxes the 'Big Three' pump into the economy every year. "If you look at Dave's store (J. David Nourse, Dealer Principal, Kennedy Ford Sales Ltd) and my store, we probably spent $11 million in GST and PST alone," said Sanci. "Taxes would go through the roof if GM went under," said Nourse. "The payback for the government in taxes would be like six to eight months. The money they (the Big Three) are asking for is insignificant when compared to the benefits the economy derives from them," said Sanci. An additional reason for helping the 'Big Three' can be found in the work they do to help the community, the auto dealers noted. Hijazi said the group has sponsored countless local children's sports teams and spent considerable funds on holding charity golf tournaments and other events geared towards helping those in need. There is considerable frustration in the voices of Oakville's auto dealers, who said they are tired of seeing media coverage where members of the public call on the government to reject any kind of stimulus package suggesting, instead, to let the Big Three go down. The group noted that these opinions are insensitive to the thousands of Canadians who work for the Big Three and, are often based on misinformation. A popular perception is that the Big Three are in trouble because they refused to change and adapt to the current demand for smaller, more environmentally friendly vehicles. Sanci noted this could not be further from the truth. "We shut down four truck plants this year and we're bringing in small cars to build in those plants, spending billions to convert them, but do the media say that?" asked Sanci. "What they say is that we're not viable and we build trucks and we burned through $6 billion last quarter. We burnt through the cash because we're converting plants, which is not a cheap thing to do." Sanci said a large company like Ford takes time to adapt to the ever-changing market. He said Ford has now aligned its production with consumer demand, which is evident "If that loan goes through, they will get paid back in spades. All it is, is cash flow to get us through this because you can't borrow money right now." David Sanci, principle dealer Oak-Land Ford from a 1.5-per cent boost in Canadian sales last month. Paul Guimond, GlenLeven Chrysler general manager, said it is a myth that the Big Three deserve to go under because no one is buying what they are selling. He backs this up with solid sales reports for this year. GM reports 334,421 Canadian sales for 2008, with Chrysler achieving 209,408 sales and Ford getting 196,353. Added together, the Big Three make up 48 per cent of the total market, noted Guimond, who added that Toyota reported 200,311 Canadian sales for 2008 while Honda achieved 143,016. The auto dealers challenge the perception that the Big Three are not giving people what they want, noting that they are supplying the trucks needed for the construction industry and the smaller and more fuel-efficient cars many others want. 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