Last week, the three domestic automakers headed to Washington in order to present their turnaround plans and ask for billions of dollars in loans to keep them from bankruptcy.
Now, the Canadian arms of Ford
, General Motors and Chrysler
are asking for financial support from the federal and Ontario governments.
|Ford Flex at Oakville assembly plant.|
Ford's future looks like the brightest of the three, asking for a 'stand-by' $2 billion line of credit, just in case they would need it. Ford expects to break even or regain profitability in 2011. However, they are urging the Canadian government to support auto financing, since more than 90 per cent of Canadians who purchase a new vehicle rely on finance or lease programs.
While GM didn't release any specific amounts of money, they stated that they are in the process of completing a $4-billion transformation program in Canada that started in 2005. However, tough economic times are forcing them to seek financial aid from the Government.
As for Chrysler, they are also asking for a temporary loan that would be repaid in full.
The future of the three domestic automakers jeopardizes at least a hundred thousand jobs in Canada. Ford employs 10,000 people while another 19,000 work in the 400 Ford dealerships across the country. General Motors employs 12,000 people and an estimated 35,000 more work within their 700 dealerships, while Chrysler provides jobs for 9,800 people and their 454 dealers rely on 24,000 workers. And we're not even counting the thousands of jobs within the three automakers' parts and service suppliers.
|Dodge Charger at Brampton assembly plant.|