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Canada follows US with car bailout-plan

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Canada follows US with car bailout-plan

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Canada is following the lead of the United States in providing emergency aid for the car industry. The Prime Minister Stephen Harper and government of Ontario announced 2.36 billion euros worth of emergency loans for the Canadian enterprises belonging to the ailing giants of Detroit, Chrysler and General Motors. The federal government will supply the lion’s share of the financing, with 0.75 billion euros coming from Ontario, which would bear the brunt of any job-losses.

In fact, 600,000 Canadian posts would be in jeopardy over the next five years if the global downturn puts the American car makers out of business. So far, the third company in the trio, Ford, have not asked the Canadian government for help. Harper’s plan also includes two new federal measures to boost suppliers, and to make it easier for customers to get car credit. The Canadian announcement echoes President Bush’s bailout plan for the motor-industry south of the border.