GM Canada doubles aid request to governmentFebruary 21st, 2009 - 12:42 pm ICT by IANS
Toronto, Feb 21 (IANS) General Motors (GM) Canada, which had sought $3 billion of the about $4 billion government rescue package announced in December, has now doubled its request to the government.
In its new restructuring plan sent to the Canadian and Ontario provincial governments Thursday, GM asked for additional financial support - $6 billion - for execution of the proposal.
Despite further North American market deterioration, the struggling auto giant said the restructuring plan will help it achieve long-term viability and enable repay Canadian taxpayers.
The new plan will also help it maintain its share of about 17-20 percent of the parent company’s total production between 2009 and 2014, a GM statement here said.
The restructuring plan will also retain customers, dealer network and new vehicle line-up as the company’s top strength and priority, the statement said.
Though the auto giant didn’t specify the additional aid it has sought, reports here quoted a provincial minister as saying that it amounts to double the previous request.
Based at Oshawa near here, GM Canada is the country’s top-selling auto company which employed 12,000 before the economic downturn hit Canada.
Based mostly in Ontario province, the Canadian subsidiaries of Detroit’s Big Three account for about 20 percent of their total production in North America.
Since the auto industry is a major employer in the country, the Canadian government had announced a $3.5 billion package to help the sinking industry in December.
Since Canada accounts for 15 to 20 percent of the total production by Detroit’s big three, its package represented about 20 percent of the then proposed $14 billion US bailout.