While companies like Rolls-Royce are florishing, companies like GM Canada are doing the exact opposite.

It was recently made known that GM Canada is decreasing their Canadian dealership by some 40%. That’s 245 dealers GM will say goodbye to. Evenworse, the Canadian Automobile Dealers Associations estimates that around 10,000 jobs could and will be affected by these closures.

When will the insanity end?

Read (CBC)

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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

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