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Magna Says It Won’t Expand in Ontario Due to High Energy rates

(Editor’s Note:  Ontario Pension Plan alone would add $38 MILLION to their operating costs in Ontario — DQ)

Magna says no new plants for Canada, cites Ontario energy costs

Ontario energy, pension costs a concern, the company says.

Dana Flavelle — Toronto Star — May 8, 2014

Magna International Inc. says it has no plans to open any new plants in Canada despite a lower dollar, chief executive officer Don Walker says.

The nearly 10 per cent decline in the Canadian dollar relative to the U.S. greenback has helped make the Aurora-based global auto parts supplier more cost competitive, Walker told the company’s annual general meeting Thursday.

But the company said it’s concerned about Ontario’s industrial electricity rates and proposed pension plan, along with the future of its auto assembly plants.

“I’m worried about electricity prices in Ontario, where all of our plants are located,” Walker told a press conference after the meeting at The Westin Prince Hotel in Toronto. Magna operates 46 auto plants in Canada, all in Ontario where the major auto makers’ assembly plants are located.

Walker said he hoped whoever wins the Ontario election on June 12 takes action to reduce energy costs for the corporate sector.

Magna is also concerned about the proposed new Ontario Pension Plan, a key plank in Liberal Premier Kathleen Wynne’s election platform. The plan aims to close a shortfall in Canadians’ retirement savings.

But Magna said the plan would add $1,900 a year per employee to the company’s costs.

“That’s a pretty significant cost to us,” chief financial officer Vincent Galifi said, noting the company has 19,000 employees in the province.   Continue reading here….

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One Comment on “Magna Says It Won’t Expand in Ontario Due to High Energy rates”

  1. Lois Lane - MAWT May 9, 2014 at 7:13 am #

    Reblogged this on Mothers Against Wind Turbines Inc..

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