Canada Joins in Auto Bailout Effort

2008-12-20 22:23:35 (GMT) (WiredPRNews.com - Business, News)

Canadian governments agree to give Canadian subsidiaries of the Detroit Big Three $3.29 Billion.

Wired PR News.com – Subsequent to President George Bush’s announcement on Friday of his decision to provide the auto industry with $17.4 billion in rescue loans, Canadian governments have stepped in to provide bailout assistance for automakers as well. As reported by the Associated Press (AP), Canadian subsidiaries of Chrysler LLC, Ford Motor Co., and General Motors have been granted 4 billion Canadian dollars (3.29 billion in U.S. currency) by the governments.

As quoted of Canadian Prime Minister Stephen Harper in the report “We cannot afford, in the United States or Canada, the catastrophic short-term collapse of the Big Three automakers. The U.S. has signaled that they are not going to allow these companies to fail, and we will do our share of the North American package to see that this doesn’t happen either.”

The bailout is said to assist with maintaining plant operations during the automakers’ restructuring process. The auto industry is deemed a vital aspect of Canada’s economy, representing 14 percent of their total manufacturing output. The first of the loan assistance will be given to Chrysler Canada and General Motors Canada on December 29.