Canada unveils car rescue plan
21-12-2008
Canada will follow the United States in providing C$4 billion (US$3.3 billion) in emergency loans to the Canadian arms of Detroit's ailing automakers to keep them operating while they restructure their businesses, Prime Minister Stephen Harper has announced. The package, unveiled by Mr Harper and Ontario Premier Dalton McGuinty, comes a day after the White House unveiled a $17.4 billion package to shore up the US auto industry. Mr Harper also announced two new federal measures to help the overall industry - one to help automotive suppliers and another to help consumers to get credit to buy cars. The federal government will provide C$2.7 billion in short-term loans and Ontario C$1.3 billion. Mr Harper said the government hopes to recover this money but recognizes some of it is at risk. "There are literally across the country hundreds of thousands if not millions of potentially affected families by the distress of this industry," Mr Harper said at a joint news conference. "And we are obviously making sure at this Christmas time that within the confines of our responsibility for taxpayer money that we are also going to look after their interest." Mr Harper said the aid reflected Canada's 20 percent share of the production capacity of the North American market.
