Toronto, Ontario – The province of Ontario is contributing loans to Chrysler worth $1.258 billion, partnering with the Canadian and American governments to restructure the automaker.
Combined with $2.517 billion from the federal government, the loans bring Canada’s total commitment to $3.775 billion. The support is proportional to the US$12.08 billion funding package announced earlier by President Obama.
Along with the U.S. government, the Canadian government will hold a proportionate share of the new company that will result from Chrysler’s bankruptcy filing and its partnership with Fiat. The provincial and federal governments will receive a combined two per cent share, and Canada will appoint one of nine board members of the restructured company.
“The auto sector sustains thousands of current jobs for Ontario families and supports the pensions of many of our retirees,” said Dalton McGuinty, Premier of Ontario. “That’s why we’re partnering with the federal and U.S. governments to put the industry on a more sustainable footing for the long term.”