Just when you thought the much celebrated car bailout in the U.S. was forgotten and done with, Canada is now the next country being sought by GM and Chrysler for help. The Canadian units of General Motors Corp and Chrysler are seeking as much as C$10 billion ($8 billion) in aid from the Canadian and Ontario governments as they fight to survive an industry-wide crisis.
The requests represent a big increase in the amount of aid that the companies had previously said they needed. Canada had pledged C$4 billion in support at the end of last year.
The companies are reeling from the brutal downturn in the highly integrated North American auto sector and are seeking repayable loans to help them survive.
It proposed a 10 percent cut in executive salaries, and reduced pay and benefits for salaried employees.
Significantly, the plan would also keep 17 to 20 percent of GM’s production in Canada over the next five years, the company said, a feature the Canadian government signaled was essential.
GM Canada refrained from providing a dollar amount on its proposal, but Tony Clement, the Canadian industry minister, said GM is asking for C$6 billion ($4.8 billion) to C$7 billion in repayable loans.
(Source) Reuters
Tags: auto sector, Chrysler, General Motors, general motors corp, GM, gm canada