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Canada to pitch in 20 percent on top of Detroit Three bailout

12/12/2008, 8:48 PM

By Nick Aziz

Canada has agreed to contribute an additional 20 percent on top of whatever amount the U.S. government decides to loan to the Detroit Three — assuming the Bush Administration goes ahead with its $14 billion plan. That could work out to $2.8 billion USD ($3.3 billion CAD) .

“The federal and Ontario governments are ready to move quickly if and when the Americans approve a support package,” Federal Industry Minister Tony Clement told reporters in Toronto.

The announcement came late Friday amid ongoing uncertainty over the future of the industry. GM and Chrysler are said to be in talks with the White House and Treasury Department about emergency federal aid, following the failure of a similar proposal to pass the Congress.

“What we are signalling here tonight, both the governments of Ontario and Canada, is that we want to be part of the solution as well and it will be commensurate with the production that takes place here in Canada .– about 20 per cent,” Clement said.

The Detroit Three employ around 30,000 people at assembly plants and warehouses in Ontario. The Canadian Auto Workers union had been pushing the federal government all day to make an announcement in order to increase pressure on the White House.

“It is up to the automakers, with their parts suppliers and the unions, to work together on a long-term solution for their industry,” explained Clement. “Governments can decide to help, but these decisions will only be made in the best interest of the taxpayers.”

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12/12, 8:52 PM

posted by:

johnnycanuck

Finally my tax dollars going towards something I care about. You’re welcome, eh?

12/12, 9:10 PM

posted by:

mayer_ray_nagin

Relish it, Johnny. It’ll likely be the one and only time you’ll ever say that …. until they come out with beer subsidies. And yes, thank you.

Now if only our dumbass government would get its act together. Not gonna hold my breath.

12/12, 9:15 PM

posted by:

darx_ider

To Johnnycanuckl, I would say invest our tax dollars in our health care system and our schools instead of giving to those gas sucker monsters

12/12, 9:26 PM

posted by:

Lariat Luxury Locomotive Liner No.3

There goes Johnny Canuck’s beer money, eh!

12/12, 9:33 PM

posted by:

procrastinate now

Wow, that’s a generous offer. Thank you, johnnycanuck. I hope you get a good return on your invested tax dollar. Like mayer, I’m not holding my breath. I can only wonder if our cousins to the north will be as generous when the Big 2 come back hat-in-hand in six months. They did testify they will need $60B-$100B in Q2 of 2009.

12/12, 9:35 PM

posted by:

sharpie

Get those GOP on board first, cuz 20% of zero is still a big fat zero. Can’t believe Bush is the right one this time around.

12/12, 9:40 PM

posted by:

A4

maybe the UAW should take a page out of canadas book.

12/12, 10:18 PM

posted by:

johnnycanuck

darx_ider, I respect your opinion because as a nation we probably tend to do that more than we should but if you’re so vehemently opposed to help saving the industry then what in the name of those cool 5 slot wheels they put on Zambonis are you doing here? And health care? Just how much more of the public trough do you want to throw into that 400lb gorilla? The only thing more inefficient in this country is the gun registry. How about the untold millions we throw at the First Nations just so the chiefs can get rich while the rest of the tribe lives in squalor? As for education I have a son in college and a daughter in high school and I can’t say that I’ve been anything less than impressed with the system. It’s like anything, you get out of it what you put into it. We’re taxed to death here and for the first time since a case of beer was $2.64 I’m proud of the stand our government is taking. I’m sorry you don’t feel the same.

12/12, 11:41 PM

posted by:

atoms

hey i got this idea, they could sell cars to make money, oh wait…..

12/13, 12:43 AM

posted by:

C6Racer

“what in the name of those cool 5 slot wheels they put on Zambonis are you doing here?” Johnny, my man, you never fail to put a big retarded grin on my face.

12/13, 4:56 AM

posted by:

darx_ider

The very ideal way to end the “Big 3″ crises is to sell those companies (GM, Ford and Chrysler) to Canada :-) we will make them manufacture the best cars in the world; we have very sophisticated engineers who always think clean and efficient. Besides our budget has massive surplus worth 1.3 trillion dollars, so I think we can handle buying those companies. Furthermore, we are gonna offer free shipping to U.S. consumers ’cause Canada borders the great United State of America :-)
What do you guys think? If anyone can pass this message to Mr. Barack Obama to the U.S. Senate then please do asap.

Cheers ;-)

12/13, 8:57 AM

posted by:

Thunder Chicken

While I think the US government should bail out US automakers I’m kinda on the fence over whether the Canadian government should do the same, simply because there are no Canadian automakers. It’s not that I’m not for (temprarily) helping support a failing industry during abnormal times, it’s just that in Canada, Ford, GM and Chrysler are every bit as much imports as any other manufacturer. By all rights, if Canada decides to prop up foreign businesses, all automakers (including Honda, Toyota, Nissan, etc) should expect to get their fair share of that $2.8 billion. Certainly any manufacturer that builds cars in Canada should have access to the money (I believe Corrollas and Civics are both built in Canada)…

darx_ider: Your last statement actually has a ring of sense to it. I can’t see all the big 3 becoming Canadian, of course, but I’d not be surprised in the slightest to see Magna International buy up the remains of Chrysler. Magna was the second in line after Cerberus, after all, so they have shown interest before.

12/13, 2:41 PM

posted by:

Blakkarr

US politicians could stop giving the foreign companies money to come the the states and not signing inequitable trade agreements. Why Politician did not try to enlist the companies to help with issues like Health care, is beyond me, or push them to really improve their operations until they were over a barrel is just completely beyond me.

This mess is as much their fault as it is the companies themselves, and for their role in making the Auto companies non-competitive, the politicians should have to put up for some kind of loan package.

The Detroit 3 was competitive as long as the Japanese and European car makers had to actually ship their wares over here. They were competitive as long as our markets were as relatively inaccessible as theirs are actually inaccessible. The Japanese and South Korean markets is not hard to get to, those governments consciously shut the door on all but a scant few imports a year. They take our money and will not allow for a fair shot to earn it back in trade and sells, literally allowing only 1 import for every 100 or 1000 cars they build or export overseas. Detroit is not allowed to build even a one factory in those countries. This is why China is so very important to DETROIT, not only are there no import restrictions but once those import restriction are broken in Japan and SK, the Imports will flow like Niagara Falls.

We want our money back!

For Canada’s part, they are bound at the hip with US and I welcome their willingness to do what I think is the right thing for both our peoples. Too bad so many of our politicians do not see it that way.

12/13, 7:44 PM

posted by:

DB9

Yes indeed, I think many have wondered what would have become of Chrysler if Frank Stronach had bought the company.

Cerberus only wanted Chrysler Financial. If the market hadn’t gone south (credit crisis started the summer of 07) they would have reorganized the company to maximize its resale value in the market. Bad luck for them. Although I have nothing against them; I don’t feel sorry for them.

Even if Frank still wanted Chrysler, with the turmoil in the global car market, the business case is not there. As a primary supplier to the industry domestically and internationally Magna has other more pressing concerns. Still One wonders what if…

Chrysler under Stronach would probably still be a contender. The quality of its products would be vastly better if not at the top of their market segment. The second generation LX’s would be out already – more refined and sleeker. The Sebring and Avenger would not have been still born. Instead they would have been worthy compliments to their larger LX Brand Mates – thanks to the return of Ralph Gilles to Head of Design. World class small and alternate energy vehicles would’ve joined the lineup – thanks to the knowledge Magna has in building/developing these types of autos for others. Jeep would not have lost its focus as it did under Daimler. The plethora of inferior uncompetitive models across all three brands wouldn’t have happened. More importantly, however, with Magna’s expertise Chrysler’s engineering would have been state of the Art. Ah Yes, What could have been…:-(

DB9

12/13, 8:29 PM

posted by:

idrinorbarsaku

Wow really? that’s incredibly nice of them! oh wait, they need the big 2.5 to be here as much as the US does. Thank you Canada, for almost being like the US

12/13, 8:29 PM

posted by:

Kanucko

I think in return Canadians should pay what the Americans pay for their Destination Fees. Typically Americans are paying $850 for cars made in Ontario, but Canadians are paying $1300 to $1500.

We must be subsidizing the transport of the cars to California or something.

12/14, 11:33 AM

posted by:

Mutant@DCX

second annoucement: GST will be 26% effective Monday.

12/14, 6:15 PM

posted by:

freeyellow2000

WTF:

Why does Canadian gov’t want to wait for the US to see if any $$$ will be given out. You can forsee that US Gov’t is going to bail out the Big2.5 automakers. It just a matter of time. (when it be in C11 or pre-bankrupky package)

I wonder if they automakers just say something to the effect like this: All Canadian factories are closing down. I bet the Canadian govt would open their wallets

12/14, 8:01 PM

posted by:

DeansterTJ

GOod to know the money I make is going to just about everyone but myself. Thanks government of Canada, you ****ing assholes.

12/15, 9:46 AM

posted by:

gehrhardt

Hmm, typical of the current Canadian government. The US congress decides to strike down the deal late last week and within a couple of days the “Harper-ites” start saying they’ll give the automakers money. Oh yeah, but only if the US government does first. There always needs to be a way out. I foresee another broken promise from these clowns.

 
 
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