Detroit 3 seeking $6.8 billion from Canadian government
What to do when you wanted $34 billion and Congress only gave you $15 billion? Try again, but this time go North young man. The Detroit 3 are now making a pitch to the Canadian legislature seeking an additional $6.8 billion from Canada where nearly 100,000 workers are employed in factories and dealerships bearing the Chrysler, General Motors or Ford name.
General Motors of Canada has asked for $2.4 billion in loans, Chrysler Canada Inc. is looking for $1.6 billion and Ford wants a $2 billion line of credit on "stand-by" to be used "only if the current economic crisis worsens." GM is also seeking an immediate $800 million to make it through the end of the year. The Detroit automakers are quick to point out that these amounts are proportional to the U.S. bailout requests and that they are asking for loans, not handouts.
Federal Industry Minister Tony Clement was in Washington during the recent hearings and says the Canadian government will have to review the requests before pledging any funds. He had previously confirmed that funds were set aside to help automakers in the most recent budget. Premier Dalton McGuinty also pointed out the need to balance the public's needs with the carmakers' requests: "We want to move as quickly as we can, but we don't want to move so quickly that we end up with a response that is irresponsible given the legitimate demands of taxpayers." Thanks for the tip, Xeyad!
[Source: The Hamilton Spectator via MotorGears.com}
Reader Comments (Page 1 of 4)
jv2k 1:02PM (12/08/2008)
Wow.
Asking another country for a bailout is just shameful.
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David 1:31PM (12/08/2008)
Toyota has been asking for money from the Germans and eventually they will ask there own country for a bail out and no one seems to say SH!t about this?
jv2k 1:53PM (12/08/2008)
1.The hell are you talking about, people complained about that too.
2. So because I feel a domestic company asking another country for aid seems somewhat off that instantly means I have no problems with toyota doing it?
Quit being so damn defensive.
Randy 1:55PM (12/08/2008)
I don't think it's shameful for the car companies, they actually do business and employ people in Canada. It's no different than the silver platter Toyota and Honda get in the US.
I think it's a kick in the balls for the Senate! It's like saying "You've been inadequate in helping and now we have to seek help from other Governments".
Personally I think the small loan for the time being that the US is providing is a good idea. It allows them to say "here's half now and if you're good, more later".
I've actually watched the CSPAN coverage and it's actually entertaining. It goes something like this..
Senator: Hey GM, you messed up everything you've touched in the past 10 years. Now you want money from taxpayers.
GM: Yeah, basically!
Senator: Hey Chrysler, you've messed up everything you've touched, well, since you've been a nameplate. Now you're privately owned, why can't your owners bail you out.
Chrysler: It would be illegal under regulations (beads of sweat dripping down Nardelli's head with a worried look on his mug) and there are pension funds involved and .. and...and... and....
Senator: Hey Ford. Why exactly are you hear?
Ford: Well we wanted to point out that our quality either meets or beats Toyota and Honda, we have the safest vehicles on the road with the most 5 star crash test ratings of any company on earth, a completely new lineup of eco friendly cars and trucks, hyrbrids and we're furthering our commitment to quality by making one global Ford.
Senator: What?
Ford: Oh, we're just hear because if these two idiots don't get the loan we'll be in deep doo doo.
The picture on Autoblog that has a caption over Mullaly's head that says "Why am I here" says it all.... LOL
Judy Zik 2:47PM (12/08/2008)
Actually the Big 3 have been North American companies not simply US companies for a long time. As of the 1960's and the autopact we formalized that relationship. Basically Canada agreed to give the Big 3 our market as long as they produce as many cars here as they sell. The agreements have changed over the years but building and designing cars in North America has remained a partnership.
Vehicles like the Chrysler Minivans have been mostly built in Canada (and quite a bit of design too). Chrysler also built the Intrepid in Canada and now builds the 300, Challenger and it's friends here. The Ford Flex, Crown Vic and Edge are also Canadian made as is the Impala, Camaro and it's corporate friends. Suzuki and GM also build the Equinox and such here. Despite job losses in recent years the Province of Ontario still builds more vehicles than any State or Province in North America including Michigan. Of course that is not just because of the Detroit 3. Toyota builds Corollas and Lexus vehicles here and Honda builds Civics. This week Toyota just opened a new plant to build Rav4's.
In Canada we also tend to support the Big 3 more than our friends to the south. GM is still the top seller. Followed by Ford and Chrysler and our market is about the size of California. Add to that the fact that they charge more for vehicles here and we have really solid banks that are still able to do loans and this becomes a really good market for them.
As for getting money out of the Canadian government good luck. Our Prime Minister just ran away from our Parliament. They are so busy squabbling over who gets the big chair we are effectively without a government until the end of January. At which point we could end up having yet another election (our 3rd in the last couple of years). The clowns in Ottawa are behaving so badly that they are making Washington look good and trust me that is no compliment to Congress.
Eventually every country that wants to stay in the car building business will have to pony up but I hope the Canadian government get's some guarantees. They helped the big three out in the past more than once. Unfortunately there is bad blood because the last time they did it GM took the money and then turned around and closed the plant that was supposed to be saved.
UAWwife 10:44AM (12/14/2008)
Why isn't everyone complaining about all of the taxpayer $$ that has gone to AIG and they continue to fail. On top of that, they had the stupidity to give BONUSES last week after accepting over $100 billion of taxpayer $$. That's bulls**t!!!! Why aren't they called on the carpet and asked how they arrived and ask them for their restructuring plan???? Because it benefits the government financially - that's why.
axium 1:05PM (12/08/2008)
The first try on that caption was pretty funny, the second is hysterical. Keep it up guys!
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cFoo 3:30PM (12/08/2008)
I second that. Keep 'em coming. Captions captured the entire story. There is no need to read further.
Allen George 1:08PM (12/08/2008)
Love the speech bubbles - they work beautifully . . .
And I don't support the Canadian federal govt. or the Ontario govt. from pumping more money into GM, Ford or Chrysler.
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Allen George 1:10PM (12/08/2008)
Hmm . . . that 'from' shouldn't be there. Should be:
"And I don't support the Canadian federal govt. or the Ontario govt. pumping money into GM, Ford or Chrysler."
bcgreybear 3:02PM (12/08/2008)
Dam this is so good to watch and see unfold. As a small business owner who went through tough times and eventually had to close my business I had to accept the fact that I did not have a product people wanted or I made bad decisions for my business. Now I see if I employed thousands of people instead of 10 or 20 and did the same thing I can go to the government and get free loans. Dam that's good stuff. Wake up you guys, your companies are in the toilets because YOU made the decisions to go in the direction you went, you did not provide for tough times by building a contingency fund. Now you have the balls to ask me for money. Right, stop by my place I will meet you at the front dollar with a wheel barrel full of money I have no use for so may as well throw it at you guys. As a Canadian I have something to tell you if you think we will support your bad decisions as tax payers. Not a hope in hell!!! As much as I hate to see any industry fail if you fail so be it, the people are not buying your products dummy, figure out why and fix it, don't come crying to me to give you my tax dollars. Instead of wasting time trying to get free bees, try spending time with real people struggling to buy your product and prove that you have fixed the mess you created and earn the support of the buying public. Americans supported their domestic car industry as long as they could, you did something to loose that support or they would still be there, or am I missing something here. It seems the days of "Apple Pie and Chevrolet" are gone unless you bring it back. Hugs from a tax payer, that's all your going to get. Now get to work like the rest of us.
Sea Urchin 1:09PM (12/08/2008)
But "Domestics" also build in Mexico, why not ask them? God knows we have done a lot for Mexico.
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Menice 1:19PM (12/08/2008)
i'm sure they plan on doing that if need be.
what a bunch of greedy losers.
how about taking a loan from their savings to give to some of the people they have screwed. wonder how much Wagner and his beggers have 'given back' to community..
Tourian 1:32PM (12/08/2008)
Well, I maybe Mexico has already paid back all that America has done for it. After all, it's the drug mafia trying to get drugs to you Americans what's holding Mexico down.
Get informed before you start talking international crap, and welcome to the globalized Internets.
Sea Urchin 2:58PM (12/08/2008)
Tourian....there's not enough money in the world for Mexico to thank USA for all we have done for you.
We have taken millions of Mexicans and made them AMERICANS, we treat you guys just like Americans if not better.
So a few billion is nothing.
JDMlover 1:13PM (12/08/2008)
Nice new Look Auto Blog...looks much better then the older page
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meshies 1:38PM (12/08/2008)
I def had to recheck my URL to make sure i was in the right spot.
Ligor 1:13PM (12/08/2008)
no,
next should be Australia, then the EU, then we can get back to Mexico and Brazil
this is too funny,
het sine we wanted 25bill and we only got $15bill, then let's go around the world for the rest
I support our gov't asisting them (with loans mind you not cash without return) but asking other coutries???
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Mazda FTW! 1:14PM (12/08/2008)
I don't see why not. I'm Canadian and to me the Ford plant at Oakville, the GM plant at Oshawa and the Chrylser plant about 10mins from where I live are all part of my landscape and they hire thousands and drive the economy. So yes, if they need help, then they should recieve it. Those plants are Canadian. If we can spend billions on a 'Governor General' and having elections every 18 months, we can spend a little to keep the Ontario industrial machine running.
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slicecom 1:31PM (12/08/2008)
We have already been spending billions on them for years and they've been returning the favour by cutting jobs.