Detroit Automakers Ask the Canadian Government for $6.8 Billion (The Torque Report)

Detroit Automakers Ask the Canadian Government for $6.8 Billion

A final decision from the U.S. government about the loans for the U.S. automakers is expected anytime now, but it's expected that the final amount will only be between $15-17 billion. Which is much less than the original $34 billion the automakers were asking for. To help raise more money, the automakers are now asking the Canadian government for $6.8 billion. The Big 3 employ about 100,000 workers in Canada.

“North American economic conditions now make it necessary for us to seek government assistance to sustain our business and supply chain,” said Arturo Elias, president of General Motors Canada.

General Motors of Canada has asked for $2.4 billion in loans, Chrysler Canada Inc. is looking for $1.6 billion and Ford wants a $2 billion line of credit on stand by that would only be used if the economic crisis worsens. In addition GM is asking for an additional $800 million just to make it through the end of the year.

Canada's Federal Industry Minister Tony Clement has stated that the Canadian government will review the requests before making any commitments to the automakers.

Full Story: Motor Authority

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Posted by Marc Carter on December 8, 2008 | Permalink

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Comments (30)

will:

Sad...

Hope they go bankrupt and then got bought from some other company.

We will see hell lotta Japanese and european cars around, sounds great!

Posted by will | December 8, 2008 4:49 PM

Posted on December 8, 2008 16:49

Peter:

What about help from Mexico also since they have plants down there

Posted by Peter | December 8, 2008 4:57 PM

Posted on December 8, 2008 16:57

Joan of Arc:

I don't think Mexico would care too much about that... they've got bigger problems right now.

Posted by Joan of Arc | December 8, 2008 5:10 PM

Posted on December 8, 2008 17:10

Professor:

I don't think any amount of money $34billion or even $50 billion will help or make any difference.

The problem is that no one is buying, or is going to buy cars until they feel secure again. Right now everyone is insecure about their jobs and if they will be able to pay their current loans, morgages, or rent, to be able to be thinking about buying a new car. In fact, many people are even returning the cars they already bought because either they lose their jobs, or are not able to continue making the payments. And the ones that actually want or try to buy a new car are faced with the problem that the banks are denying their loans.

And anyway. One or two of their top executives make about that amount in salary. Why they don't fire a few of those top executives instead of the employees that actually do the work?

Posted by Professor | December 8, 2008 8:18 PM

Posted on December 8, 2008 20:18

ZevoOptik:

I have a different story. I did try and buy a new car, oh yes. On October 3rd I walked into a local Chevy dealer and ordered a 09 Cobalt SS. I had to order one because they dont make them without the $750 sunroof which optional equipment, go figure. I was told 4-6 weeks.

Five weeks in, I get a phone call stating that the car hasn't even been built yet, that the tachometer is out of stock and holding it up. I called Chevy corporate and they confirm. So I wait.

Seven weeks in, I get another call, this time telling me it wasn't the tach, but the digital boost guage, and that I could change the order if I wanted to the normal to get the order in. Thanks GM for not knowing the difference between a tach and wasting all that time when I could have modified the order seven weeks again and changed it. I tell them to let me wait a day to decide.

I get a phone call the next day telling me no worries! The part is in and now it will be built on December 1st. December 5th rolls around and oh no, its not built, the guage is still holding it up, and it's now too late to change the order, the new build date is January 5th, a full 14 weeks after I put in the intial order. And id expect delivery at the end of January.

You be the judge yourself of GM.

Posted by ZevoOptik | December 8, 2008 8:57 PM

Posted on December 8, 2008 20:57

lowest iq:

If detroit gets a much as one dollar without strings attached in the way of 'qualty of roadmap' etc then.....

I saw this fart bragging about a roll-out of 24 new products in the next so-many months. I am not aware of Chrysler introducing anything usefull, besides usual window dressing and a i-pod powered car. But that could be me.....

Posted by lowest iq | December 8, 2008 9:17 PM

Posted on December 8, 2008 21:17

SteelCity1981:

The U.S auto industry is starting to become a bum looking for handouts on a street, if it doesn't get it from the U.S. it will try to get it from Canada, what's next Europe.....................

Posted by SteelCity1981 | December 8, 2008 9:28 PM

Posted on December 8, 2008 21:28

jettto:

US should let them die... we'll just have more europeens and japanese car... the industry wont die... it will just be replaced by better companies....!

Posted by jettto | December 8, 2008 9:48 PM

Posted on December 8, 2008 21:48

Kato:

This is ridiculous any other industry would have just had to put up, shutup and go bankrupt.
Why is it that nothing is ever allowed to fail these days?
The world will not end if these businesses fail. Someone else will either buy them or step up to take their place making cars.

Posted by Kato | December 8, 2008 9:52 PM

Posted on December 8, 2008 21:52

cobaltssman:

Maybe they should ask North Korea for some charity too.

Posted by cobaltssman | December 9, 2008 12:38 AM

Posted on December 9, 2008 00:38

Brian:

@Zevo,

My first car was a 96 Cavalier..(hey I was a teenager). But it was ordered, and probably took over 3 months to arrive. Never really questioned it, just called every month or so to check in on it.

Posted by Brian | December 9, 2008 12:49 AM

Posted on December 9, 2008 00:49

hi:

Why North Korea?

They'll have a better chance asking Russia. They have been buying/builing american cars for quite a few years now. Perhaps they can help.

The BIG 3 need some serious restrucuting.....No's their chance!!!

Posted by hi | December 9, 2008 7:02 AM

Posted on December 9, 2008 07:02

rsud:

Folks that call for no bailout of US car companies....

Realize that Germany and Japan subsidize their auto companies regularly. In this downturn Germany and Japan are giving bailouts to their auto companies.

But Germany and Japan also give $$ incentives and tax breaks that allow Toyota, et al to lower their development and manufacturing costs and are then be able to sell higher quality cars (then American cars) at a lower cost.

American companies must absorb higher development and labor costs and are at a disadvantage when it comes to a selling price.

While I think American car companies need a management overhual (buncha greedy bums) recognize that the playing field is not level against foriegn car companies.

Posted by rsud | December 9, 2008 10:52 AM

Posted on December 9, 2008 10:52

gm0n3y:

Fuck you Big 3, getting your money grubbing hands out of my country. So you employ 100k people, when you leave the other major auto employers here (Honda, Toyota) will pick up the slack. Its not like just because they go under people will stop buying cars.

Posted by gm0n3y | December 9, 2008 11:10 AM

Posted on December 9, 2008 11:10

426Hemi:

"It;s not like just because they go under poeple will stop buying cars." gm0n3y

I will.

Posted by 426Hemi | December 9, 2008 1:38 PM

Posted on December 9, 2008 13:38

426Hemi:

Sorry, It's.

Posted by 426Hemi | December 9, 2008 1:42 PM

Posted on December 9, 2008 13:42

lowest iq: