OTTAWA, Jan. 27 /CNW Telbec/ - CADA President Richard Gauthier today
praised the federal budget for announcing the new $12 billion program designed
to address the shortage of liquidity and credit for the automotive businesses
A full section of the budget was dedicated to the auto industry and the
Government has pledged to create the Canadian Secured Credit Facility with
allocations of up to $12 billion to purchase term asset-backed securities
(ABS) backed by loans and leases on vehicles. The facility will be priced on
commercial terms and will therefore be expected to generate a positive return
for the Government.
"This measure is aimed squarely at providing liquidity to auto dealers
and consumers. It will help unfreeze credit markets and allow the affiliate
finance companies to support dealers and consumers in a more robust way,"
stated Richard Gauthier. "We are very pleased that the government heard our
message on liquidity and has moved quickly to earmark an impressive $12
billion in vehicle credit measures."
In November 2008, CADA launched the lobby campaign aimed at creating a
government program to increase access to credit and financing in the retail
auto sector. CADA worked with the Minister of Finance and Senior Finance
officials over the past twelve weeks to outline programs that would support
the retail auto sector.
CADA was on Parliament Hill for a special Budget lock-up that allowed the
association to preview the budget measures and begin working with Finance
officials on the next steps for rolling out the program. During this session,
CADA met with senior political staff from the Prime Minister's office and
Minister Flaherty's office, including the Minister's Chief of Staff.
Discussions on next steps for the Canadian Secured Credit Facility were
"The Budget announcement is a first step in helping to relieve credit
pressure for dealers but there is a lot of work to do," outlined Gauthier. "We
need to continue to work with Government and the Canadian Finance and Leasing
Association so that these funds flow to main street to relieve the real credit
crunch of our members.
The budget signaled that measures must begin to have impact over the next
120 days and CADA will begin working right away to ensure credit markets thaw.
CADA also outlined strong support for the significant increase in the
Small Business Deduction to $500,000. This measure increases the amount of
small business income eligible for the reduced federal tax rate of 11 per cent
to $500,000 from the current limit of $400,000 as of January 1, 2009.
The Association is also pleased that the Government will be making
support available to the range of automotive firms, including Canadian-based
assemblers, parts manufacturers and suppliers, and firms not yet located in
Canada that are looking to invest here. The Government recognizes that Canada
is part of a highly integrated and increasingly global market. As stated in
the Budget, Canada's role as an automotive-producing nation must be understood
in this context and levered to generate the greatest benefits for Canadians.
The Canadian Automobile Dealers Association (CADA) is the national
association for franchised automobile dealerships that sell new cars and
trucks. Our 3,500 dealers represent a key sector of Canada's economy. Through
our dealers, we are represented in nearly every community and those dealers
collectively employ over 140,000 people across the country.
For further information:
For further information: Kate Poirier, CADA Public Affairs, (613)
230-2079, Cell: (613) 889-3846, firstname.lastname@example.org