Looks like the U.S. auto industry might be getting some help from our neighbors to the north. Canada has agreed to contribute up to 20% of the value of whatever loans the U.S. government is willing to give to the American auto industry. The offer perfectly coincides with the amount of production by U.S. auto companies in Canada.
“What we are signalling here tonight, both the governments of Ontario and Canada, is that we want to be part of the solution as well and it will be commensurate with the production that takes place here in Canada, about 20 percent," said Federal Industry Minister Tony Clement. “It is up to the automakers, with their parts suppliers and the unions, to work together on a long-term solution for their industry. Governments can decide to help, but these decisions will only be made in the best interest of the taxpayers.”
Presently, the big three employ around 30,000 Canadian workers in assembly plants and parts warehouses all over Ontario. With that many people relying on these American companies, it’s only fair to assume that Canada is only looking after its own. But the truth of the matter is they really don’t need these companies to survive. Those 30,000 Canadians will get other jobs. But the truth is they are willing to help. That might be worth a bit more than 20%.
Source: Left Lane News