A Ford Motor Co. proposal to invest more than $1-billion and secure 4,000 jobs in Oakville, Ont., will be in deep trouble without federal government financial help, says Ontario Economic Development Minister Joe Cordiano.

"If the federal government is not at the table, then I have serious doubts about the viability of that [Ford] proposal. We will not be able to conclude a full agreement with Ford," Mr. Cordiano said in an interview yesterday in response to comments made earlier this week by Conservative Party Leader Stephen Harper, who said a Tory government wants to eliminate subsidies to business.

Ford is proposing to redevelop its Oakville assembly complex to turn it into a leading-edge flexible assembly plant that would produce two new crossover utility vehicles and the next generation of the auto maker's minivan.

The auto giant has said publicly that it's seeking about $200-million in financial assistance from the Ontario and federal governments for the project, which it wants to have up and running in late 2006.

Ford Motor Co. of Canada Ltd. said it would not comment on what Mr. Harper said.

His comments "certainly draw a line in the sand," said one high-ranking industry source.

Mr. Cordiano, a Liberal who was appointed after the government of Dalton McGuinty swept the provincial Conservatives out of power last fall, said Ontario has told Ford that it's prepared to support the company as much as possible.

Under the terms of the $500-million Ontario Automotive Investment Strategy introduced by Mr. McGuinty and Mr. Cordiano in April, the Ontario assistance would amount to 10 per cent of the project's total cost, or $100-million.

"Not enough can be said about the importance of the auto sector, not only to Ontario's economy but to the entire country," Mr. Cordiano said yesterday.

"It's not just throwing money at the sector. We're actually making some strategic investments."

Mr. Cordiano said he wants all federal parties to make a commitment that they will support the automotive industry.

In addition to Ford, General Motors of Canada Ltd. has had discussions with the two levels of government about a proposal to spend as much as $2-billion upgrading its Oshawa, Ont., operations and significantly increasing its research and development activities in Canada.