We helped out General Motors and Chrysler, so why shouldn’t we do the same for Bombardier?
That’s what Quebec’s economy minister, Jacques Daoust, is asking right now as the province begs the country’s new Prime Minister for a $1 BILLION “investment” for the troubled manufacturer.
Quebec has put together a $1-billion bailout package for Bombardier’s struggling CSeries jet program, and wants the federal government to match their funds so that the company can remain afloat. It plays a big role in Quebec, especially the aerospace sector. There are 17,750 employees in Quebec and 6,350 in Ontario.
Quebec’s $1B gives it a 49.5% interest in the CSeries, a project that isn’t expected to turn a profit until at least 2020. It hasn’t sold an order for the plane in more than a year.
Would you be happy if the federal government spent $1-billion on a business that is struggling with its model? Should Bombardier be rewarded for creating a jet that nobody seems to want right now? If we did it for other businesses, why shouldn’t Bombardier get a handout as well?
Bombardier is failing in other areas as well. The Toronto Transit Commission is suing the company for its failure to live up to their end of a $1.2-billion, 204 unit streetcar contract. 73 Bombardier streetcars were to be delivered by the end of 2015, but Bombardier says they won’t be able to meet that target.