Rep Power: 651

The Canadian government on Tuesday said it will provide additional help to the country’s auto industry but warned that Canadians need to be prepared for the possibility that General Motors Corp. and Chrysler LLC could file for bankruptcy protection.

“We have to ready ourselves for other options, including Chapter 11 in the United States and CCAA bankruptcy protection here in Canada,” Industry Minister Tony Clement said.

Clement said $700 million Canadian ($565 million) will be provided to help auto-parts suppliers.

Canada will also help consumers by backstopping auto warranties in the event that a carmaker files for bankruptcy. That backstop of warranties matches what the U.S. has done.

Both the U.S. and Canadian governments are awaiting new restructuring plans from GM and Chrysler before approving more bailout money for the struggling companies. Clement said GM and Chrysler must present plans that maintain the 20 percent Canadian share of production.

The auto industry directly employs more than 150,000 Canadians plus another 340,000 Canadians indirectly.

Clement said it’s difficult to say whether Chrysler will survive. Chrysler was given 30 days to cement the Fiat alliance as part of its restructuring plan. Some industry analysts have said Chrysler will be forced into bankruptcy protection if it cannot complete the deal by the end of April.

“It’s difficult to say,” Clement said. “Over the next two or three or weeks perhaps I’ll be able to give a better answer.”

The Canadian government has had talks with Fiat.

Canada last month offered up to $4 billion Canadian in interim loans to help keep GM and Chrysler afloat. Chrysler has taken some of the money but GM has yet to. The two companies have received $17.4 billion in U.S. government loans to fund their operations as they try to slash costs and debt levels to stave off bankruptcy.

“The situation is bad,” Clement said. “It’s very dependent on the United States situation. When Americans stopped buying cars it affected the auto sector worldwide. At the same time at the current rate that Americans are buying cars it means they are going to keep their cars for 27 years. Americans are going to start buying cars again. They are not going to keep their cars for 27 years.”

The money for the auto suppliers will be used for accounts receivable insurance. Accounts receivable refers to the money that is owed to a company and the federal funds will provide a type of insurance that will ensure auto parts makers will be paid if a customer fails.

visit www.GTcars.ca for more news on the Canadian auto industry



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Rep Power: 779

STOP THROWING MONEY INTO THE FIRE !!!!!!!!!!!!

 
Rep Power: 649

want them to do it later then?

 
Rep Power: 625

How about not at all. The unions are just as much to blame as the white collars upstairs.. Somehow thinking their grade 10 drop out *** is somehow justified in a 40/hr paycheck with a retirement package beyond any other blue collar package around the world.. White collar living in a world of fantasy and dicking around with how badly can we make cars and still sell them.

The North American auto industry on every level ate it's self into extinction. I say good riddance to bad trash.. and from the ashes maybe 1-2-3 smaller , leaner and more forward thinking companies will emerge to push the industry forward , not do it's best to keep it 20 years behind the times, with 240hp V8's and solid rear axle's..

Can't say i'll be sad to see Ontario's dependence on US car mfg's go bye bye.. and I will really be tickled to see those mass of arrogant union tools have to face the real world where you actually NEED to preform well on the job to stay hired..

 
Rep Power: 649

bitter much?

 
Rep Power: 625

lol nah, just fed up with unions holding the Canadian GDP, or my kids education hostage every few weeks..

 
Rep Power: 649

don't see how they do that .......

 
Rep Power: 692

I work mostly with domestics(Im a service advisor) and it sucks seeing every effing Grand Am, Grand Prix, Regal, etc that comes in with intake manifold gasket problems..I dont understand how you can use the same motors for 15 years and not fix the effing problem. I dont want them to go out of business as thats how my company stays in business because lets face it, GM & Chrysler(Not so much Ford) are pure garbage.

They suck people in with 160xxxKM warranty like its something to be proud of but yet when you need your I.M. gasket replaced due to it being faulty, they dont cover that? Thats complete ****in bullshit.

Im happy I drive a VW which has their own sets of problems but at least they can admit when they made a faulty part.

 
Rep Power: 649

i've had good luck with my fords and GM products. not so with my jetta.

 
Rep Power: 692

Ive had nothing but success with my VW. The people who complain about VW problems are also the ones taking it to the next joe schmoe who rips them off. People these days are lazy and dont want to find the right mechanic so they take it to people like me where they get upset when they see that we charge 90$ hour and they need roughly 2000$ in labour work to fix their GM's and Fords.