First, I apologize for running late. It wasn't my intention. I got the times mixed up because of the time zone difference. I'm currently in Edmonton.
Unfortunately, the Paccar plant—which is indeed the last remaining truck assembly plant—is not an isolated case. A similar decline has been observed in several sectors. One of the reasons is that we don't buy from domestic suppliers. For example, Paccar is struggling to secure contracts from the City of Laval, but because of the “lowest bidder” policy, these contracts may slip away, likely due to a difference of 1%.
When procuring goods and services, public service purchasers don't really seem willing to truly consider the impact of buying Canadian for this type of product. This is disastrous because the Paccar plant can produce about 100 trucks per day, yet it is currently making just 25.
So the question is this: For how long will fixed costs allow a facility that has a production capacity well in excess of 25 trucks per day to remain profitable?
If the Paccar plant goes, trucks will no longer be manufactured in Canada.
