The three largest automakers in the United States are hopeful the industry will rebound from declining sales and the prospect of collapse, Canada's industry minister said Wednesday from Detroit.

'I think we're going to end up with a smaller auto sector in the province of Ontario.'— Ontario Premier Dalton McGuinty

Following meetings with auto sector officials there, federal Industry Minister Tony Clement wouldn't discuss details of how badly the so-called Big Three — General Motors, Ford and Chrysler — are faring.

"It's not my place to give an opinion on that," Clement said.

"Let me say this though: Each executive that we met with today was very optimistic about having a domestic, continent-wide auto sector that can build cars and sell cars that people want to buy."

Clement and Ontario Economic Development Minister Michael Bryant were in Detroit Wednesday and head to Washington, D.C., Thursday on a fact-finding mission to assess the depth of the auto sector crisis, and what impact a proposed U.S. bailout would have on Canada's car industry.

The Big Three have been pleading for the U.S. Congress to grant them a $25-billion US government-backed "bridge loan" to stem layoffs and plant closures. The proposed bailout has stalled in the U.S. Senate, raising fears that one or more of the auto companies could fold before any action is taken.

Clement refused to speculate Wednesday on that possibility, which would have a devastating ripple effect in Ontario, the heartland of Canada's auto sector.

"All I'm doing is gathering the information," he said, noting that the discussions will help inform any decision about what measures Canada may take to stave off the crisis.

Bryant was less discrete about his prognosis following the talks, although he acknowledged the Big Three "very much want to have a bright future in Canada" despite their current troubles.

"The information that we've gathered so far certainly confirms the crisis that they're under," he said.

"Some companies are in different shape than others, but regardless, they're all facing a liquidity crisis and it's coming to a head in Washington this week."

Even if the United States and Canada bail out the ailing auto sector, Ontario Premier Dalton McGuinty warned Wednesday that his province won't be able to avert further layoffs and plant closures.

"I think we're going to end up with a smaller auto sector in the province of Ontario," McGuinty warned. "I think we're going to end up with fewer jobs than we have at present."

The premier said U.S. assistance for General Motors, Chrysler and Ford is unlikely to happen until U.S. president-elect Barack Obama takes office in late January, too late to help the entire sector.

McGuinty has expressed support for a joint Canada-U.S. agreement, and Clement has suggested he also prefers an "integrated solution." Bryant has insisted Canada move swiftly to guard against job losses in the event that a U.S. bailout requires auto companies to repatriate jobs from Canada and Mexico to become eligible for government assistance.

Canadian government has promised up to $450M

Clement said Wednesday it was "too soon to tell" whether Canadian job guarantees will be a condition of financial aid if Canada joins the U.S. in some sort of assistance measure.

The federal government has promised up to $450 million for the auto industry, though it's still unclear how the money will be allocated. It's also still uncertain whether Ontario would contribute to any aid package.

Ontario's premier said he will do what he can to shore up the faltering industry but he has not considered a Plan B if one or more of the automakers goes under.

"Not even going to think about that," McGuinty said.

"What we're going to do is work as hard as we can to make something good come out of this."

He stressed that the government, automakers and unions need to work together here at home to come up with some kind of assistance package.

Canadian Auto Workers president Ken Lewenza said his union is unwilling to reopen contracts, saying labour costs account for only seven per cent of costs and union members made $900 million worth of concessions in their latest contracts.

But Conservative Member of Provincial Parliament Joyce Savoline said the union must consider making additional concessions, though it's unclear yet how deep a compromise it would take.

With files from the Canadian Press