While no specific figure has been given for the Canadian aid request, GM and Chrysler said they expect amounts proportional to the loans they are seeking back in the States. Unfortunately for the Canadian government, it has little to no bargaining power as both GM and Chrysler have already threatened to shift production and jobs to the U.S. and Mexico.
A collapse of the Detroit 3 would be disastrous for more than 600,000 Canadian workers, mostly from Ontario. Canada is currently responsible for 17-20% of GM’s North American production and any aid would be proportional to this figure, reports Automotive News.
Even with the aid, GM still plans to cut its Canadian workforce to 7,000 people by next year - down from a high of 20,000 in 2005. GM has also warned that its current pension and healthcare obligations were unsustainable and that it is considering establishing a union-managed healthcare fund in Canada - similar to one taking shape in the U.S.