Canadian government offers $4 billion (CAD) to auto makers

December 21, 2008 – 11:49 pm – No Comment

The Canadian federal, as well as Ontario, government will be providing $4 billion Canadian dollars ($3.29 billion U.S. dollars) to the Canadian subsidiaries of the Detroit Three automakers.

“The Canadian plan will provide General Motors Canada with loans of up to 3 billion Canadian dollars ($2.47 billion) and Chrysler Canada will receive up to 1 billion Canadian dollars ($823 million). The companies will get the money in three installments, with the first portion coming Dec. 29.” – AP

Canada’s automotive industry makes up about 14% of its overall manufacturing output, so if either GM or Chrysler fall, the country would be very negatively affected, just like the U.S.

Ford, however, did not ask the Canadian government for money, just a line of credit in the future. It also didn’t take any of the current $17 billion loan offered by the United States government. They did say that they would be in trouble if either of the other two companies went under.

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