Canada, Ontario to Give GM, Chrysler C$4 Billion Aid

Dec. 20 (Bloomberg) -- General Motors Corp. and Chrysler LLC will get C$4 billion ($3.3 billion) in government loans from Canada and the province of Ontario, a day after the U.S. agreed to aid to keep the two automakers operating.

General Motors Canadian unit will receive C$3 billion while Chrysler is set to get C$1 billion, the two governments said today.

“This is a huge problem that faces the Ontario community and the Canada economy by extension,” Prime Minister Stephen Harper said at a press conference in downtown Toronto today.

Canada’s aid builds on the $13.4 billion in U.S. emergency loans announced by President George W. Bush. Canadian Industry Minister Tony Clement on Dec. 12 pledged to offer GM, Chrysler and Ford Motor Co.’s Canadian units federal and provincial aid “proportional” to the their contribution to North American production, which is about 20 percent.

“We will not allow catastrophic collapse” of the industry, Harper said. “But the auto companies have to change the way they do their business in a very serious way.”

Ontario will contribute C$1.3 billion to the package and the Canadian government C$2.7 billion, Ontario Premier Dalton McGuinty said at the same news conference.

GM had asked for C$800 million ($641 million) in aid from Canada by month’s end and an additional C$1.6 billion line of credit through the second quarter.

The industry will have to restructure and will probably end up being smaller, said Harper.

Source

All I can say is I really should have started my own failing car company so I could stand in line for hands outs too

I am surprised that this has not generated more comments from our Canadian counterparts.

Are Canadian citizens screaming in protest over this or are the even aware of what is going on?

I know that there was a big fuss with the Prime Minister closing down Parliment. Was this his reason why? So he could funnel some money to the dying car companies?

I would like to hear some opinions from others on this.

Originally posted by secretstash
Are Canadian citizens screaming in protest over this or are the even aware of what is going on? I would like to hear some opinions from others on this.

We don't have a whole lot of manufacturing sector left here, so it is imperative that these well-paying jobs survive and continue to inject wages into the local economy. Frankly, what frightens me is that auto sector jobs are even leaving Mexico. ($2.00/hour) because they can find cheaper labour overseas.

I saw GM get handed a bunch of provincial cash and promptly break their end of the deal...what...a year ago? What I want to see is that the money is put into creating innovative vehicles that compliment a green society. Give us a green choice and get ahead of the Asian manufacturers for a change. So, I'm all about strings attached.

But with all this fuss, let's not forget the urban and suburban tractors that so many folks have been buying. Really...who the hell needs a hummer? We should take those buyers and smack them upside the head for being morons. We need sustainable manufacturing, a good product, and good jobs to service them. There's my fuel for the fire...

For the sake of my fellow citizens of my country, I hope their jobs can stay because to lose a job can put very many families in an awkward situation that can usually lead to some not so good things. However, I'm from Manitoba where our manufacturing industry does not depend on automobile manufacturing, and that is why we have one of the strongest economies in Canada. All I can say is hopefully families don't lose jobs, but people will learn to diversify the market niches so that when a crisis does happen, there is alternatives.