Building a Stronger Canadian Auto Industry

One odd little detail that I haven't seen come up in too many news reports on the Chrysler bankruptcy -- but that does make an appearance in the Treasury's fact sheet -- is that the Canadian government will get a share of the company:

The Governments of Canada and Ontario will together receive 2% of the equity of the new Chrysler.  Based on its substantial financial contribution, Canada will also have the right to select one independent director, on the same basis as the four independent directors initially chosen by the U.S.

A quick note about this: One of the arguments that you hear over and over again in favor of saving a company like Chrysler is that it's an iconic part of American industrial history. To pluck one of many, many examples, this morning Obama said: "This is a company that has a particular claim on our American identity."

I think this argument is pretty unappealing on the merits -- you hear the same kind of rhetoric about industry and identity pop up in support of, say, agricultural subsidies -- but I also find the actual pursuit of this weird identity goal to be obviously belied by the facts of the case. Chrysler is going to become part of an Italian car company. And it's doing so with Canadian dollars!

This article available online at:

http://www.theatlantic.com/politics/archive/2009/04/building-a-stronger-canadian-auto-industry/16953/