Wednesday, April 1, 2009

Follow-up Report: Canada also rejects GM and Chrysler restructuring plans

With Obama's administration rejecting GM and Chrysler's viability plan, and setting close deadlines for new plans or else the two companies will go bust, the two hopeless-case companies when for the Canadian government to some desperate help. Canada is responsible for nearly 90% of the factories of both GM and Chrysler.

Not surprisingly though, officials from the Canadian and Ontario governments have followed the U.S. government's lead by officially rejecting the restructuring plans of General Motors and Chrysler. The Canadian officials said the automakers' current plans do not go far enough and will not be certified as they are. In fact, they're basically copying and pasting the new deal for automakers announced by the U.S. government earlier, saying that GM has 60 days to redo its plan while receiving a portion of the C$3 billion it requested and Chrysler has 30 days to finalize its partnership with Fiat while receiving C$250 million of the C$1 billion it requested.

Let's see where all this end up to, Detroit!

Source : [The Detroit News]

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