Canadian Government Cuts Chrysler Emergency $250 Million Check To Make Payroll
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]
With AutoGuide from its launch, Colum previously acted as Editor-in-Chief of Modified Luxury & Exotics magazine where he became a certifiable car snob driving supercars like the Koenigsegg CCX and racing down the autobahn in anything over 500 hp. He has won numerous automotive journalism awards including the Best Video Journalism Award in 2014 and 2015 from the Automotive Journalists Association of Canada (AJAC). Colum founded Geared Content Studios, VerticalScope's in-house branded content division and works to find ways to integrate brands organically into content.
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chrysler should NOT get 1cent from the gov. i purchased a new dodge nitro2 years ago it has bin at the dealers 30 days in toatle, they now refuse to fix the heater problem an the shudder in trans. ther coment is they are all like that. what we all need is cold air leaking in to drivers aria in winter. SUMMERY THEY CONTINUE TO MAKE JUNK AND DO NOT DESERVE TO SURVIVE.I HAVE DON MY PART FOR THE WORKERS AND THEY AS WELL AS CHRYSLER HAVE LET OWNERS OUT TO DRY