Canadian restructuring plans due for GM, Chrysler
Two of the Big Three automakers, General Motors and Chrysler, will present their restructuring plans for Canadian operations Friday, days after they asked for billions more from Washington.
Ontario Premier Dalton McGuinty says he and Prime Minister Stephen Harper expect "new demands" from the beleaguered automakers.
Two months ago, the governments of Canada and Ontario offered the automakers $4 billion in aid to prevent a collapse in the faltering global economy.
North American automakers are suffering from their slowest sales in 26 years and dwindling operating cash.
GM and Chrysler submitted viability plans to Washington on Tuesday. The automakers are now asking the U.S. for a staggering $39 billion US in government loans and are cutting 50,000 jobs in an effort to turn operations around.
A Canadian auto analyst and labour leader says the companies' Canadian operations could emerge unscathed from the cuts.
The University of Windsor's Tony Faria says it's likely GM has already cut what it can in Canada.
The company also says it still plans to begin manufacturing the new Chevrolet Camaro in Oshawa and the Chevrolet Equinox at the joint GM-Suzuki plant in Ingersoll, Ont., this year.
Canadian Auto Workers president Ken Lewenza says he believes GM — which is closing plants in Oshawa and Windsor — has already cut as much as it can here.
With files from the Canadian Press