PM announces financial support for the restructuring of General Motors

The governments of Canada and Ontario are co-operating to provide financing to General Motors of Canada Limited (GMCL) and General Motors (GM) Corporation to support the companies’ efforts to restructure while maintaining Canada’s production share in the Canada-U.S. market and making a significant investment in research and development.

“The management, unions and financial institutions behind General Motors have each made major sacrifices to help ensure a sustainable, competitive company going forward,” said Prime Minister Stephen Harper, who was joined by Ontario Premier Dalton McGuinty and Federal Minister of Industry Tony Clement in making the announcement.  “Ensuring a viable industry was always the objective behind our offer of financial support.  Both levels of government are working to ensure that Canada maintains its share of production within the Canada-U.S. market.”

The financial support being provided by the governments of Canada and Ontario is parallel to that announced earlier today by the U.S. Government.

The support to GM includes a working capital loan and a medium-term restructuring loan to the company’s Canadian operations.  In conjunction with the U.S. Government, the Government of Canada and the Government of Ontario are also supporting a court-supervised restructuring of GM Corporation in the U.S. through joint Canada-U.S. debtor-in-possession financing.

“The Canada-U.S. auto sector is heavily integrated and a viable GM will provide long-term security for thousands of Canadians who work for suppliers, research and development institutions, and other supporting industries.  It will also provide confidence to current and future GM vehicle owners,” said the Prime Minister.  “Our government’s long-term goal remains the same – to ensure that there is a sustainable Canada-U.S. auto industry in which Canada maintains its share of production, secures significant investment in research and development and innovation, and protects high-skill jobs.”