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2 The Canadian Statesman, Bowmanville, January 10,1990 ___ 1/1 1 ✓'N 1 Less Than One Week Interest Rates Blamed for Slow Car Sales Before VIA Line Ends ; VIA is about to derail its Toronto to Havelock route, although the Toronto/ Havelock Passenger Association is hoping that the line will soon re-open. 1 The Association called a meeting at City Hall in Toronto yesterday (January (January 9) to hear proposals for a new passenger passenger rail service in the province. ; Mayors from 31 communities in Ontario Ontario were asked to attend in order to hear the details of a proposal to have bombardier Inc. , of Montreal, operate four passenger lines in southern Ontario, Ontario, using the rolling stock it manufactures. manufactures. I A director of marketing for Bombardier, Bombardier, Andres Darvarsi, was scheduled to be in attendance to answer questions questions concerning the proposed transportation transportation alternative offered by Bombardier Bombardier for the Toronto/Halton corridor. The Bombardier company has expressed expressed interest in the proposal, but is waiting for input from the affected communities and a study regarding the feasibility of the proposal before making a commitment. The Toronto Havelock Passenger Association (THPA) is putting forward a proposal which sees the municipalities municipalities operating the stations andpark- ing facilities for the Monday to Friday passenger service which would include runs to Peterborough, Cobourg, Brantford Brantford and Kitchener to Toronto. Paul Pagnuelo, President of THPA, hoped that all the mayors would attend attend Tuesday's meeting and throw their support behind the concept. Mr. Pagnuelo and the THPA have lobbied the government hard to retain the VIA service for the area, but the cutbacks are being implemented on January 15. The commuters will board the VIA train for the last time on January 12. Mr, Pagnuelo says that he expects many former commuter users to ride the rails for the final run that day. General Motors' Canadian president president said yesterday that the automaker automaker expects to sell 345,000 cars and 175,000 trucks in Canada during 1990. In a media conference held Tuesday in Montreal, George A. Peapples predicted predicted that new vehicle sales in 1990 will exceed 1.435 units -- down 3.7 per cent from 1989. "The market will remain remain very competitive in 1990 and we are ready for it," he said. Locally, GM officials are not predicting predicting any additional layoffs beyond the ones announced for the first three weeks of January. These have resulted in 9,000 employees being off work and a further 800 workers have no definite answer as to when they will be recalled. recalled. Nick Hall, a spokesman for General Motors, said the market conditions have been slow as the result of many influences. "But the main cause of slow sales is the Bank of Canada's high interest rate," he said. GM's December sales figures for Canada indicated a 23.7 per cent decline decline over December of 1988. One of the few bright spots in the statistics was the C/K extended cab model man- , ufactured at the Oshawa truck plant. It continues to be a strong seller. Mr. Hall indicated that no additional additional lay-offs are planned and no more workers will bè involved. "The extensive layoffs were caused when plants affected by the slowdown were laid off which caused a domino effect," Mr. Hall said. Mr. Hall admitted that the foreign car manufacturers had made inroads into the North American car market. However, he believes that because the Japanese cars were priced higher than the domestic varieties, the loss in sales could not be attributed solely to them. He believes the slower sales figures are the result of a combination of events. The Bank of Canada's refusal to UOOKAT Speaker Explains How Canadians Will Compete N 1 % January Sale^ mother mod DRAPERIES 1 0% to 20% OFF ALL FABRICS 20% tO 30% OFF MINI and VERTICAL BLINDS Come visit our lovely showroom at 34 Kins Street West, Bowmanville Telephone 623-2826 - Free Home Consultations - We accept Visa otâOsT 1 From Page One The guest speaker also pointed out that it is. sometimes easier to export export goods, such as honey, honey, to foreign markets than to ship it to Quebec because of provincial barriers barriers erected to regulate the trade of certain goods between the provinces. "These trade barriers must be removed to allow free trade between the provinces in order to strengthen. our position as a unified country in the global market," Mr Cardiff added. There must also be a national policy which recognizes recognizes regional diversities diversities put in place. "The diversity diversity of Canadian agriculture, its history, and its constitution nose a challenge. There is a need to ensure that the economic development needs of the various regions regions build on their relative relative advantages without hurting other regions," said Mr. Cardiff. ■ ■-» : His government, he stressed, is looking for ways to develop national S policies which are flexible, flexible, and recognize regional regional realities nut encourage encourage a more level playing field for the future. This Ihl BRANDOM WELCOME THE 90'S IN STYLE WITH A BEAUTIFUL BRANDOM KITCHEN! Save up to 80% on selected in-stock cabinetry at Brandom's Amazing Inventory Clearance Sale! Update your kitchen to meet the new decade with the warmth and elegance of solid oak or add a splash of colour with one of many contemporary styles. With savings up to 80% on selected cabinetry and 50% on vanities, plus immediate delivery, you can't go wrong. A vast- selection of cultured marble countertops and basins is also on sale. The Amazing Inventory Clearance Sale ends January 31, so hurry to Brandom's showroom in Courtice for the best selection at the best possible prices! HIM , M4I HIM 432-3300 wSn NKliA Mon. - Tues. 8 am - 5 pm Wed. - Tluirs. 8 am - 8 pm Friday 8 am - 4 pm Saturday Closed Sunday 10 am-3 pm 17.12 Dawllne Road fowlin' will benefit every region with growth and prosperity. prosperity. "The changes which have taken place even in the last six months have had an impact unimaginable unimaginable six months ago." said Mr. Cardiff ip reference to the knocking down of the Berlin Wall and the many countries which have emerged from the oppression of Communism. Communism. Mr. Cardiff quoted from a speech made by. Lee Iacocca in Xvhich he stated that due to America's America's outstanding debt of over half a trillion dollars which escalated in the 1980's and the fall from great heights of her banking banking firms, America will prosper in the 1990's only if it has learned a hard lesson from the 1980's. The lesson is that we must process our own raw materials if we are to prosper in. the global market of the current decade. Mr Cardiff's speech was well received by the many farmers of the region region who had gathered to hear him speak. He answered answered many questions from the floor and was able to lay some of the farmers' fears of the future future of farming to rest. The parliamentary secretary secretary was introduced by Jim Rickard, a, member of the Lions Cliib and former former president. He was thanked by Garnet Rickard, Rickard, Jim's father. lower the interest rate was seen as the major culprit in the declining health of the auto industry. "It is definitely the high interest rate," said Hall. "When tne interest rate drops from the present 14 to 15 per cent rate for a car loan, then you will see business pick up." GM President George Peapples said at Tuesday's news conference that "continuing high interest rates were of concern," and that "much of the falloff in vehicle sales in the last quarter of 1989 could be traced to those (high) rates." Also a factor influencing the sales are the incentives manufacturers have been offering to stimulate sales.These incentives ran out in November and Mr. Hall says that "some people are just waiting for the next round of incentives incentives to be offered in the form of a low percentage financing package, moneyJoack offers and extended contracts contracts before they buy." John Sinclair, president of Local 222 of the Canadian Auto Workers, agreed with the high interest theory when quoted in a recent interview. Mr. Sinclair believes that the Canadian Canadian car market has to be more competitive. He pointed to the low 4.8 per cent financing program Ford has instigated in the U.S. and the rebate incentive Chrysler has on its Magic Wagons as examples of incentives that could be used to stimulate car sales in Canada. According to Mr. Hall the enormous growth" in consumer spending over the past several years is another reason reason for the slow sales. 'The economic growth rate was phenomenal. It had to slow down sometime." Mr. Peapples noted at the Montreal news conference that "while the shortterm shortterm outlook for the automotive industry industry is for continued softness, general trends in Canada indicate there is still more than just a little life left in the economy," citing relatively stable, unemployment unemployment ana inflation levels as indicators indicators of that strength. The GM president also predicted that economic growth in early 1990 would be sluggish but would gradually gradually strengthen m the latter half I Tidbits from f then in the latter halt or the stimulate activity in dealer showrooms. Mr. Hall believes that many prospective prospective buyers are tied into long-term contracts of up to four years with foreign foreign manufacturers. "People aren't trading their cars as often when they're tied into these contracts - they can't. When they go to trade in their car to buy another they realize that this car they have been paying for has no equity and they can't afford to trade up. Since the buying market has shown a preference for the smaller to midsize midsize range of GM cars, the Chevrolet Sprint, Cavalier and Corsica and the Pontiac Firefly and Tempest which are not manufactured locally, the local plants producing the mid-sized Chevrolet Chevrolet Lumina and Buick Regal were bound to suffer sooner or later. A new four-door version of the popular popular Jimmy/Blazer vehicle, and the completely re-designed Chevrolet Caprice Caprice introduced at the Montreal Auto Show proves that GM has shifted their focus to new product development. General Motors is introducing more new products this year than m any other in its history. PORT ^EItRy - A provincial court in Scugog Town- ship js jjeihg relocated to Whitby because of a shortage shortage of suitable space in Port Perry. Provincial court used to held twice a month in the council chambers of the,-municipal offices in the township but after Scu- gog council decided not to renew the lease with the province, and they were unable to find a suitable location, location, the Attorney General's office for Ontario decided to move the court to Whitby. The court used to hear cases under the Provincial Offenses Act. WHITBY -- Parking meters in municipally owned lots were removed in Whitby-last week as a result of that municipality's plans to avoid paying taxes to the province under the new Commercial Concentration Tax. Last May, the provincial treasurer, in his new budget, announced plans for an annual tax of $1 of every square foot space of municipally paid parking lots. Whitby decided to avoid the tax by making lots free and increasing on-street parking. Allan Furlong, MP for Whitby said it was Whitby's decision to change their parking and it wouldn't have a great impact on the province's coffers. But he did say it may cause him problems when he tries to get funding for projects in Whitby. OSHAWA -- The Oshawa Rotary Club has announced that they have admitted their first woman into their once all-male club. Margaret Bain, a gynecologist in Oshawa, went to her first meeting as a member this week. The president of the club thinks the Oshawa Club is the first in the area to induct a woman. OSHAWA - The Durham Board of Education has decided decided to punish trustees who are absent from meetings meetings by either publishing a report on attendance of trustees at meetings or deducting $100 from the trustee's trustee's honorarium for each meeting the trustee is ab- :h meeting tne truste sent. The chairperson of the school board said trustee attendance isn't a critical issue but needed to be addressed. addressed. OSHAWA » If teachers in Durham Region's separate school board decide to strike this month, students may still receive instructions. High schools may hire study study group leaders to help students and others to supervise children. Teachers are currently on a work-to-rule campaign and arc refusing to work past 3:45 p.m. Wages and class size are major issues in the dispute. AJAX -- Police are seeking witnesses to a collision in the Town of Ajax that took the life of an Ashburn resident resident on January 8. Police report that at 8:35 a.m. two vehicles collided at the intersection of Taunton and Audloy Roads in Ajax. A 1986 Pontiac Sunbird, southbound southbound on Audlcy Road, was operated by Sharon Woodbine, Woodbine, 32, of Ashburn. A 1988 Ford Van, westbound on Taunton Road, was driven by Lon Lcnthcrdnle. 72. Sharon Woodbine was pronounced dead at the Ajax- Pickering General Hospital and Mr. Lcathcrdalo was treated for undetermined injuries. Both vehicles were written off. Police arc asking for any witnesses to this collision to call them at 683-9100 and ask for Constable Constable Bob Annan or to speak to the sergeant in charge. WILLIS FINANCIAL SERVICES • Best Rate RRSP 11.50 1 yr. See » • GIC's, R.R.S.P.'s • R.R.I.F.'s • Mortgages • Bookkeeping "Our best interests are yours!" 623-9400 (705) 324-9898 243 King S'I. E„ 4 1/2 Cambridge SI. N,, Bowmanville Mall Lindsay, Oni. t* kV*"' Read All About It! 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