Ontario Premier Dalton McGuinty announced today that the Canadian government would be contributing to the Detroit Three bailout.
The Canadian provinces of Ontario and Ottawa would finance a secondary bailout, as the Detroit Three all have significant operations in Ontario. McGuinty said that it’s too early to speculate on how much aid may be given to the automakers because Ontario is still assessing the situation, but it’s expected the final figure will be approximately twenty percent of whatever the U.S. government lends the automakers. Presently, the Canadians expect to pledge approximately $3.4 billion Canadian ($2.8 billion USD).
Premier McGuinty’s statements come just after Economic Development Minister Michael Bryant called the possible loss of the automotive industry in Ontario a “doomsday scenario.” If the Detroit Three go out of business, Canada could lose over 580,000 jobs.
Canada has helped the automakers out before in building facilities and funding research in an effort to attract and keep jobs in Ontario. Ford and Ottawa announced in September that they would be partnering to build a research center for environmentally friendly technologies. The partnership includes up to $80 million Canadian ($66 million U.S.). Ontario also established a $500 million Canadian ($413 million U.S.) fund to help keep jobs in Ontario.
Souce: Detroit Free Press