Ottawa: Toyota Canada is urging the federal government to provide billions of dollars in credit and incentives such as a tax holiday to stimulate new car sales, saying such an approach would be preferable to a bailout of General Motors and Chrysler.
At a Commons committee hearing last night, Toyota Canada managing director Stephen Beatty said the industry's biggest challenge is the lack of credit, with dismal consumer confidence running a close second. He said slumping sales are jeopardizing more jobs at dealerships and suppliers than at the threatened assembly plants.
"In an integrated North American market, Canada must do its part to address the economic forces that have caused new car purchases to stall," Mr. Beatty told MPs. While he did not directly criticize the bailout plans, he encouraged the government to focus instead on programs that encourage Canadians to buy new vehicles.
"If the government wants to help the manufacturing activities of the auto sector, the best way to do that is ensure there's a healthy market for their products. The fastest and most effective way to do so is to create immediate access to credit."