Canada officially approves its own $4 billion auto aid package
True to their word, the Canadians came through with an aid package to support the auto industry, namely GM and Chrylser. The amount to be loaned is $4 billion Canadian, with $2.7 billion coming from the national government and $1.3 billion coming from Ontario, where much of the industry is based. With the conversion from Canadian to U.S. dollars at today's rates, that works out to just about the 20-percent that was promised. Parts suppliers in Canada will also have access to the money, and some portion of the loan will also be used to provide impetus to get banks to lend money to buyers. Yet, as with the American loan, it won't last long: one analyst said "It probably only buys them three months or four months where they can get their ducks in order ... and hopefully come up with a plan to get everything straightened out so that they can survive." [Source: CTV]
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Reader Comments (Page 1 of 2)
Iliketurns 10:24AM (12/21/2008)
Thank you Canada!
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GenoMalice 3:45PM (12/21/2008)
Uhhh are you all dense? Soccer Mom was correct!
20% of 14 billion USD is 2.8 Billion USD;
While 4 Billion CAD is at today's (December 21st, 2008 @ 3:39PM EST) exchange rate worth 3,290,962,066.67 Billion USD..
Therefore, We can safely round that off to about 3.3 Billion USD which is obviously more than that 20% of the 14 Billion American Bailout Canada has promised.. and thus Soccer Mom was right in stating that they got 117% (actually closer to 117.5%) more than what they hoped for...
I don't even wanna get into explaining how wrong, grammatically, that sentence that Soccer Mom brought up from the Article was and before you go and say my post is grammatically incorrect just know I'm typing this on a Blackberry, while the editor (Jonathan) was sitting at a desk presumably or in front of a full keyboard.
117.5% because they hoped but were not really promised/deserving for the 20% (2.8 Billion USD) but then they got 17.5% more than even that 2.8 Billion since they actually got closer to 3.3 Billion USD
Soccer Mom 10:29AM (12/21/2008)
Jonathon Ramsey, how did graduate from the middle school with such an impressive math skills?
The link you provided states that USD $2.8B hopefully (not promised, but hoping to get) will come from Canada. CAD $4B came, which at today's exchange rate of .82 is about USD $3.28B.
$3.28B is about 117% of what we were hoping for (not promised). How did you pull that it is just about 20% of what was promised?
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Wow 10:48AM (12/21/2008)
By "the 20-percent that was promised," he means 20% of the US bailout amount. I think this was quite clear.
Soccer Mom 10:57AM (12/21/2008)
Wow, in such case there is also a problem with writing skills.
"With the conversion from Canadian to U.S. dollars at today's rates, that works out to just about the 20-percent that was promised." - that sentence clearly states that the amount promised (which is incorrect already) is 5 times of what was given. Since the article talks about Canada only, in this context it states "20% of what Canadians promised", creating twisted perception that Canada not only promised funds (which it didn't) but also did not follow on its promises, giving mere 20% of what it promised.
nadroj20 11:06AM (12/21/2008)
No, you are completely wrong. You couldn't be any more wrong. The article specifically states "the 20% that was promised" and is also linked to an article talking about Canada being willing to provide 20% of what the US provides. It's called reading comprehension.
GenoMalice 3:47PM (12/21/2008)
Uhhh are you all dense? Soccer Mom was correct!
20% of 14 billion USD is 2.8 Billion USD;
While 4 Billion CAD is at today's (December 21st, 2008 @ 3:39PM EST) exchange rate worth 3,290,962,066.67 Billion USD..
Therefore, We can safely round that off to about 3.3 Billion USD which is obviously more than that 20% of the 14 Billion American Bailout Canada has promised.. and thus Soccer Mom was right in stating that they got 117% (actually closer to 117.5%) more than what they hoped for... .
117.5% because they hoped but were not really promised/deserving for the 20% (2.8 Billion USD) but then they got 17.5% more than even that 2.8 Billion since they actually got closer to 3.3 Billion USD..
I don't even wanna get into explaining how wrong, grammatically, that sentence that Soccer Mom brought up from the Article was and before you go and say my post is grammatically incorrect just know I'm typing this on a Blackberry, while the editor (Jonathan) was sitting at a desk presumably or in front of a full keyboard.
P.S. Sorry for the double post.. replied to the wrong person first... sh*t happens when surfing on a Blackberry..don't get mad
Jonathon Ramsey 3:53PM (12/21/2008)
But the automakers were promised $17.4 billion, http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/12/17/financial/f174745S28.DTL&feed=rss.news. The $14 billion is only what they got this month. Twenty percent of $US17.4 billion is $US 3.48 billion.
Wow 11:03AM (12/21/2008)
I guess it's not so clear, but became clear once I followed the link on "the 20-percent that was promised."
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Kotse 11:11AM (12/21/2008)
Thank you, Captain Canuck!!
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jg 3:37PM (12/21/2008)
Is that his name? He looks like the guy from Alpha Flight but I read that comic years ago and don't remember much.
Hotrod Merc 11:48AM (12/21/2008)
If you consider per capita, That's a heck of a lot more money, than offered by the U.S Government.
Thats $119 per Canadian.
as opposed to $56 per American.
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Jonas 5:22PM (12/21/2008)
...as opposed to $340 per Swede.
Hooray for solidarity.
MemphisNET 12:16PM (12/21/2008)
You're welcome guys :)
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Oh Shite! 1:28PM (12/21/2008)
Im all for GM getting the bail out as they and Ford have the most promising line up, but Cerberus needs to open its own wallet as they billions in their institution. Chrysler needs to go through bankruptcy. Then hopefully someone who actually wants to run a car company will buy them.
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Frank 8:57PM (12/21/2008)
Cerberus has pledged 2 billion from it's sister LLC Chrysler Financial. So with the US and Canadian funds that means Chrysler should end up with about 10 billion - the exact same amount of money that Count Daimlercula stole from them a decade ago.
Judy Zik 1:45PM (12/21/2008)
Our government is so whacked. Glad they came up with cash but where is the accountability? For all we know it is paying to tool up Mexican and Chinese plants our CEO bonuses. Forget the conversion rate this money should be staying in Canada. In these market conditions we could have bought one of the big 3 for that. Instead it will go down the big drain and in a month or two they will be announcing Canadian plant closures unless they get more.
For $4 billion we could have bankrolled the purchase of Chrysler by Magna (one of their biggest parts suppliers who was in the race to buy them but lost to Cerberus). Since Magna is in the parts business and even runs their own assembly plants they have some knowledge and a vested interest in Chrysler's survival in exchange the government could have made sure they continued to build vehicles here. Imagine what Chrysler could have accomplished with an ownership that knows and loves cars.
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Jake B 3:23PM (12/21/2008)
Agreed. Magna would be doing a much better job I'm sure.
JDC 4:13PM (12/21/2008)
I have been saying this for a while. Magna should scoop up some of the wreckage this entire situation will cause and start up Magna Motors. It is too bad that Magna will want what GM and others will want.... Minivans, Trucks, and Jeep. The rest will go to China or India for pennies. I am sure Cerberus will cut it up in the new year once they get their government support payments all the while being a private equity firm...with billions in their own pocket...they are being paid to cut up the company. What a joke.
Jvijil 2:12PM (12/21/2008)
for this we will bailout their canadian bacon industry lol
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