Sunday, December 7, 2008

BREAKING Report : Ford, GM and Chrysler Seek $6.8 Billion Government Loan from Canada !

It seems that the big 3 automakers weren't pleased by the US Congress just giving them $15 billion. Because they originally wanted $34 billion. However, Detroit's Big 3 are now stretching their hands across the border to Canada seeking $6.8 billion in loans and credit lines.

Why would Canada help the American desperate automakers? Actually, all big 3 make their cars in Canada. Ford has a workforce of 10,000 people in Canada, while an additional 19,000 people are employed in the more than 400 Ford and Ford-Lincoln dealerships across the country. General Motors occupies 12,000 workers nationwide and has approximately 700 dealerships and retailers across Canada. Chrysler has 9,800 workers while its Canada network of 454 Chrysler, Jeep and Dodge dealers across Canada employ around 24,000 people. So if the automakers don't get any money, the Canadian auto industry will also be in danger.

The Canadian media is reporting that General Motors of Canada has asked for $2.4-billion in loans, with $800-million of that necessary before the end of the year.

While Chrysler Canada Inc. is said to be seeking $1.6-billion as soon as January 1.

Ford, which is in the best condition of all, delivered its plan to the Ontario government detailing a request for access to a "stand-by" line of credit of up to $2 billion to be used "only if the current economic crisis worsens".

Source : [TheSpec]

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