Industry committee  When you ask whether we made the same mistake, I'm not sure what mistake you're referring to. Investing when the dollar was down...? I guess we could be criticized for that, like any other manufacturing sector.

Industry committee  Let me answer that, for sure, because certainly the big three are the only ones who have invested in R and D in Canada to date. We have multi-billion dollars now invested in research and development facilities right here in Canada. No other company has that. When you look at the design and manufacturing cycles in our industry, plants really are only good for five years.

Industry committee  It can take many forms in other jurisdictions. I gave you one example of Australia, where they take revenue from import tariffs and funnel that back into the domestic industry. Every jurisdiction that either has an auto industry or wants an auto industry ensures that some sort of incentives are there.

Industry committee  It is the same thing. We don't have any problem convincing people in communities. We don't have any problem convincing the provincial government in Ontario about what's at stake in terms of their home-based industry, which is manufacturing. So that's not an issue for us. Convincing the others is, as Mr.

Industry committee  Thank you very much, Mr. Chairman. Thank you to the members of the committee for the invitation to appear before you today on the question of the impact of the Canadian dollar. The CVMA represents Chrysler, Ford, General Motors, and International Truck and Engine Corporation. These companies account for 70% of all production in Canada, about 55% of all sales.

Finance committee  No, but it needs to look at these other supports that I've mentioned as it relates to the auto industry.

Finance committee  I would concur. We fully expect, particularly in the supply chain, that our suppliers themselves are going to incur more job losses.

Finance committee  Boy, talk about a loaded question. Let me say this. I think whether it was the previous government—they did some great things for the auto industry—or whether it was the economic statement this government made a month or so ago, those are all things that we can well support. I think we're at a position now where we have the opportunities I mentioned.

Finance committee  The Korea free trade agreement, the way it currently stands, based on what we understand about it, could be very detrimental to the auto industry in Canada, yes.

Finance committee  Thank you, Mr. Chairman, and I thank everyone for this opportunity to appear before you today. In the previous panel you heard the other side of the auto industry, if you will. The CVMA, on the other hand, is a national association, a leading association that represents light- and heavy-duty manufacturers, including Chrysler, Ford, General Motors, and International Truck and Engine Corp.

Finance committee  I agree. One solution is to get the older, higher-polluting vehicles off the road. In fact, what has been announced actually detracts from one of the other options the government announced, which is the accelerated retirement of older vehicles program. So you basically have one program detracting from another.

Finance committee  I can only tell you what I know or believe to be the case, which is that ultimately, as it relates to this program and the accelerated retirement of older vehicle program, it is in the hands of Minister Cannon and Transport Canada.

Finance committee  That's the assumption. We don't have the data to project outward.

Finance committee  It's based on 2006 annualized sales.

Finance committee  Actually, all vehicle manufacturers have some vehicles that meet the rebate program. All vehicle manufacturers have some vehicles that receive a penalty under the program. So it's not a question of whether we have and they don't, or they do and we don't.