ontario budget may 2 Ontario budget is to be presented May 2.
I know this board has seen lots of discussion of the 150M tech funding. I don't pretend to understand fully the domino effect of how this will help AM, but from what I hear, the optimistic theory is as follows:
- tech innovation (?) fund is topped up by $150M
- ford can tap into this to remain competitive in Canada, and makes big infrastructure investments
- AM is given a new contract for at least several years
Correct in theory?
If so, how fast would these dominoes fall? I am thinking the fund top up would be immediate. The Ford infrastructure plan timing is an unknown. The AM contract decision should be right after or concurrent with the infrastructure announcement, since it has been stated by AM (and is intuitive), that you need a substantial lead time to retool for this kind of work.
So do we have any clues as to how fast Ford will announce its infrastructure decisions? For instance, has a precedent been set in similar circumstances before when Ford was holding out for government funding? While a different situation, it was interesting to see how fast Ford moved on the labour front last year. It seemed they had a plan/mandate that left GM & Chrysler looking like they were just winging it.