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Ford Canada suggests consumer incentives

March 10, 2009
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The chief of Ford Canada told a parliamentary committee in Ottawa the government should pay consumers $3,500 to trade in old cars for new ones.

David Mondragon, chief executive officer of the company, told the committee Monday night about 35 percent of Canadian vehicles are at least 11 years old. He said if the government were to post a $350 million incentive, 100,000 new vehicles would likely be sold or leased, the Globe and Mail reported.

Mondragon said Ford's Canadian division doesn't need a direct bailout, but rather stimulus to keep manufacturing. He said the company is also working at cutting labor costs.

"The key to turning this around is to find the bottom," he told the committee. "The U.S. hasn't found the bottom and, quite frankly, we haven't found the bottom here."

The newspaper said Ford Canada's woes hinge heavily on the United States, where 80 percent of Canadian production is sold. Ford's Canadian sales account for just 10 percent of all sales in North America, the report said.

UPI

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