Monday, December 22, 2008

Report : Canada officially approves its own $3.2 billion American auto aid package

The Canadian government has announced that they came up with a loan aid package for the American auto industry, specially GM and Chrysler. The amount to be loaned is $3.2 billion, with $2.16 billion coming from the national government and $1.04 billion coming from Ontario, where much of the industry's plants and factories are based.

Parts suppliers in Canada will also have access to the money, and some portion of the loan will also be used to provide impetus to get banks to lend money to buyers. Yet, as with the American loan, it won't last long: one analyst said "It probably only buys them three months or four months where they can get their ducks in order ... and hopefully come up with a plan to get everything straightened out so that they can survive."

So although Detroit is getting some good news in Christmas, they still need to work hard to "get their act together". So party on, Detroit!

Source : [CTV]

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