Chrysler Canada Headquarters in Windsor, Ontario
While President Obama outlined his plan yesterday for General Motors and Chrysler, the Canadian government was forced into some more immediate action.
Chrysler Canada, which is currently threatening to remove all of it’s manufacturing facilities from the country if the Canadian Auto Workers (CAW) union cannot make concessions, made an emergency request to the Canadian government for an advancement on a government loan.
The Canadian government has agreed to loan Chrysler Canada $4 billion to help restructure the company if they meet certain requirements. One billion of that was set to be advanced, however, Chrysler Canada is in such dire straights that it made a request yesterday for a $250 million immediate advance, without which it could not make payroll.
“Very clearly, if the money had not been forwarded today, they would not have been able to meet payroll today or tomorrow,” said Industry Minister Tony Clement. Without the funds Chrysler Canada would have had to file for bankruptcy.
[Source: The Globe and Mail]