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