Canada readies $4B auto lifeline

By News on the Net —— Bio and Archives March 30, 2009

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OTTAWA - The federal and Ontario governments have agreed to extend $4 billion in stop-gap funding for Chrysler Canada and General Motors Canada while issuing a stern warning to the companies and their union that time and patience is running out.

The two governments joined the U.S. on Monday in rejecting both automakers' tabled restructuring plans as overly rosy and unrealistic, issuing new deadlines for the companies and demanding further concessions. But in the meantime, federal and provincial industry ministers Tony Clement and Michael Bryant said they will go ahead with emergency loans - $3 billion to GM Canada and $1 billion to Chrysler Canada - to keep the companies afloat for the next few months. More...