Ottawa, Ontario – General Motors of Canada, Ford of Canada and Chrysler Canada all submitted their requests to the federal government on Friday for loans to keep their companies running and proceed with new products.
GM Canada President Arturo Elias said, “Regretfully, North American economic conditions now make it necessary for us to seek government assistance to sustain our business and supply chain. We will also work together with all our key stakeholders to review and agree to further necessary changes to our business model, including our capital structure, structural costs, pensions and health care costs to ensure sustainability within GM’s integrated North American business.” CTV reports GM Canada is seeking $800 million immediately and another $2.4 billion in loans.
Ford of Canada stated it believes it has the liquidity to weather the current economic crisis, however, it is asking for access to a $2 billion line of credit, “in case the economy significantly worsens, or in the event that a major competitor is forced into bankruptcy,” according to its news release.
Chrysler Canada didn’t reveal to the media how much it is asking for but a report by the Canadian Press said the company is requesting a loan of $1.6 billion. “Our request for a temporary and fully repayable loan from the Ontario and Canadian Governments is really two-fold,” said Reid Bigland, President and CEO of Chrysler Canada. “First, to ensure Chrysler has sufficient funds to complete our restructuring activities during what is an unprecedented downturn in vehicle sales caused by the global financial crisis and second, to ensure Chrysler Canada’s substantial Canadian manufacturing and operational footprint is protected.”