(Ebru News/Agency) The federal and Ontario governments will provide the Canadian subsidiaries of US automakers with 3.29 billion US dollars in emergency loans.The announcement follows a pledge on Friday by US President George W Bush to offer 17.4 billion dollars in emergency loans to General Motors Corp and Chrysler LLC.
Prime Minister Stephen Harper said Canada's bailout plan, the equivalent of 20 percent of the US aid package, will help keep the plants afloat while the automakers restructure their businesses to retain one the country's most important economic sectors.
Stephen Harper, Canadian Prime Minister said:
"Today's announcement is not a blank cheque. Canadian tax payers expect their money will be used to restructure and renew the automotive industry in this country. They expect all stake holders, and I emphasise all stake holders, will come to the table and work together toward sustainable long term solutions."
Canada's automotive industry represents 14 percent of the country's manufacturing output, 23 percent of manufactured exports, and directly employs more than 150,000 Canadians.
The country's largest industry within the manufacturing sector, it has been suffering from its slowest sales in 26 years and dwindling operating cash.
The companies will get the money in three installments, with the first portion coming December 29.
Ebru TV
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