Canada rejects GM and Chrysler’s viability plans

The Canadian government has also rejected restructuring plans submitted by the Canadian subsidiaries of General Motors and Chrysler. Officials from the Canadian and Ontario governments said today that the two do not qualify for $4 billion ($3.2 billion USD) in loans.

However, Chrysler will be given $250 million ($200 million USD) today and GM will get a portion of its $2.4 billion ($3 billion USD) in early April. The automakers had requested a total of $11.5 billion ($9.1 billion USD) from the two governments for their long-term restructuring plans.

The Canadian and Ontario government delivered comments that mirrored the ones made by President Barack Obama earlier today.

“We share his (Obama) concerns,” Canadian Minister of Industry Tony Clement said.

GM of Canada has 60 days to offer a new restructuring plan that must include further labor cost cuts. Chrysler of Canada has 30 days to finalize its partnership with Fiat and must complete its negotiations with the CAW.

– By: Omar Rana

Source: Detroit News