Oshawa, Ontario – General Motors of Canada has drawn down $500 million on a short-term loan agreement with Export Development Canada. The company said the funding will provide further flexibility in managing its normal operational needs while it works to complete its business restructuring plans in Canada.
“GM Canada appreciates the support of the Federal and Ontario governments as we work to complete our transformation into a leaner, customer-focused and more cost-competitive operation,” said Arturo Elias, president of GM Canada. “We are making very tough but necessary changes while remaining focused on providing our customers with the best new vehicles in our history, including the new Chevy Equinox, Chevy Camaro and the GMC Terrain, all being produced and launched in Canada this year.”
The loan is the company’s first draw of financial assistance in Canada since the federal and Ontario governments’ offer of loan support in December 2008. GM Canada said it continues to work with the governments and its key stakeholders to take the necessary actions needed to meet the requirement for an updated restructuring plan for long-term viability by May 30, 2009.