U.S. must move first on auto aid: Clement

December 15, 2008

15 December 2008

U.S. must move first on auto aid: Clement

The following article is extracted from the 15 December 2008 edition of the “Toronto Star”.

A $3.4 billion bailout package from Ottawa and Ontario for the struggling Big Three Canadian automakers appears in flux as the Bush administration hesitates and the Harper government says it won't come through with aid unless Washington does so first….

Clement's announcement on Friday that Prime Minister Stephen Harper and Ontario Premier Dalton McGuinty had reached agreement on a conditional plan to help the industry raised expectations that an emergency assistance package for the Canadian arms of General Motors, Chrysler and Ford would be on the way soon….

The Harper government's long-awaited response to the carmakers' pleas came on the same day President George W. Bush pledged to provide last-ditch assistance to save the U.S. auto sector. Bush's move came after Republicans in the U.S. Senate handed the industry a devastating loss by refusing to approve an interim $14 billion (U.S.) rescue plan….

In Canada, Clement said he is still optimistic that the U.S. government will come through with a bailout….

But Clement acknowledged that aid for the industry here hinges on the decision in Washington. If the Americans reject a bailout, Canada's options become "very limited."

The Canadian government, as it studied the situation, realized "that really the problem is in the United States."…

"The big problem ... is that Americans simply aren't buying cars. And unless there's a rescue or a fix in the United States," it's hard for Canada to act on its own, he said.

Canada has not specified the size of the bailout. But, based on its proportion of the industry, it is estimated at $3.4 billion.


Topic(s): 
Canadian Economy & Politics
Information Source: 
Canadian News Channel
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