• Dec 21, 2008
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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  • 30 Comments
      Albertoloan Investme
      • 1 Month Ago

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      • 6 Years Ago
      congratulations,Canada. you're an inspiration to the way a CIVILIZED COUNTRY treats it's very important industries, unlike the USA. no need for the dog-and-pony show; you're well aware that economic condtions (like no available credit for vehicle purchases) are causing the hard times, not what some are seeing as perceived undesirability.

      ALL automakers are having the same problem, regardless of country. hybrid sales in the US are down over 60%. if, as so many suggest, the downturn is only toward American vehicles, and everyone wants teeny cars, why have sales of Toyota, Honda, Hyundai, and Nissan vehicles fallen at exactly the same precipitous rate as the domestics? there is no money available to finance cars. with no available money, no one buys.

      Canada, you join the other nations of the world (with the US NOT included) who produce cars, like the UK, France, Germany, Sweden, South Korea, Australia, and Japan, and realize that your nations' industries are far too important to lose in this serious downturn that is being experienced worldwide, and provide economic assistance to them when necessary, without fanfare.

      unfortunately, here in the US, this requires the automakers' representatives to head to Washington. there, they speak with idiots who know absolutely nothing about their business. this, however, does not stop the elected idiots from trashing our own auto companies for building large "inefficient" vehicles that sell in the tens of millions. indeed, over 90% of our elected idiots have been driven to these very hearings in the vehicles they are berating. they sincerely hope you don't notice this fact.

      I still have a bumper sticker from 1981 when Chrysler received their government loan guarantees. (the ones they paid back 7 years early) it says, "thanks, America, now it's up to us". I'm going to put in on my Dodge pickup today.

      and thank you, Canada.

      AZMike
        • 6 Years Ago
        Geno,

        here in the US, it's really bad. I'm not aware if Canada used the same credit scoring system as the US does (Fair Isaac/FICO).

        four months ago, someone with a 600 could get financed anywhere, on anything. secondary financing would go all the way to a 500.

        today, a 750 (top 4% of all borrowers) is a push. I was talking to a customer yesterday who is the General Manager of a large Chevrolet dealer in northern New Jersey. he said they are now having trouble with customers getting bought with 800 FICO (top 1/2 of 1% of all borrowers) scores. their sales have gone from 300 per month to 25. this same issue has been echoed by other dealers, both import and domestic.

        this is really an issue with businesses, too. I have another customer who owns a large plumbing company that has been around for 80 years. they have 100 trucks, and replace 10 every year. no one will loan them the money for ten trucks, even with the company's credit record.

        I am hoping that President-Elect Obama will require banks and captive finance companies (GMAC, Ford Credit, Chrysler Financial, TMCC, et. al) to begin loaning money again. there is a huge pent-up demand for vehicles, if there was only the credit available to make it happen. the banks have it; they are just not giving it up.

        AZMike
        • 6 Years Ago
        I agree with your post completely.. and the funnier part of this whole mess is that in Canada loans are pretty easy to get as long as your credit isn't ridiculously horrible... financing from the automakers is even available across the board, at 0% A.P.R no less!
      • 6 Years Ago
      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.
        • 6 Years Ago
        ...as opposed to $340 per Swede.

        Hooray for solidarity.
      • 6 Years Ago
      Sorry. Don't seem to be able to reply from this version of Firefox.

      Re Katrina: Not only did the Canadian government and various Canadian celebs step in to help out after Katrina but Frank Stronach (the owner of Magna) built a whole village for over 200 Katina survivors which was dubbed Canadaville. He spent over $10 million and bought over 369 hectares of land to do it and had it up and running within three months. In fact years later people have chosen to stay on there. They get free rent and help finding jobs. Stronach is one of those rare business leaders who not only has real brains but a heart too.

      Re Credit In Canada: Credit has always been harder to get here. So we haven't experienced any subprime meltdown because there was never a subprime market. We have only a handful of banks and they are extremely sound but greedy. The largest bank (The Royal) wont even allow people with poor credit to open a savings account. Even with everything going on they are posting profits. That said the banks have used the current situation as an excuse to shut off the credit taps which is drawing fire since the government already stepped in to protect them.
      • 6 Years Ago
      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?
        • 6 Years Ago
        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.
        • 6 Years Ago
        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
        • 6 Years Ago
        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.
        • 6 Years Ago
        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.
      • 6 Years Ago
      Thank you Canada!
      • 6 Years Ago
      I'd much rather have seen the industry restructure and put the money to support the people who'd be out of work. The industry is sick and needs to be let go so it can rebuild into a healthy competitive state.

      Boo.
        • 6 Years Ago
        I hope everyone understands that these bailouts are meant to keep GM and Chrysler alive for a few more months. It won't magically return them to the profitability they saw during the SUV craze. Restructuring is in the cards. People and plants will be idled. Workers will have to take cuts in some form and probably the retirees too. There's too much capacity in the world. If Detroit were more competitive, cuts would be shared amongst all auto manufacturers, but that's not the case, and the cuts will be concentrated with them.
      • 6 Years Ago
      Remember me the tragedy with the Katrina in New Orleans, from what I read the Canadian help got there before Bush's help...
      • 6 Years Ago
      Cool even more money
      • 6 Years Ago
      Thanks Canada, for your quick no bullsh*t decision. I'll bet had your banker walked with $350,000,000,000.00 you would have ask questions of "them", instead of bashing the automobile industry like a bunch of 5 graders.
      • 6 Years Ago
      Thank you, Captain Canuck!!
      • 6 Years Ago
      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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