Wednesday, December 17, 2008

Canada Ready For Auto Bailout - Contingent On U.S. Bailout

582,000 Direct and Indirect Auto Industry
Jobs Could Be Lost In Canada

A whopping 582,000 direct and indirect jobs would be lost in Canada over the next five years if the ailing Big Three US auto makers shut down their Ontario operations, said a study Tuesday. If output is reduced by 50 percent, 296,000 jobs would be lost nationally, said the 11-page report prepared for the Ontario Manufacturing Council.

The auto sector and parts industry employ roughly 219,000 Canadians nationwide. The Big Three directly employ about 34,000 workers while overseas car makers employ just under half that number.

On Friday, the Canadian and Ontario governments reached a tentative deal for a 3.4-billion Canadian dollar (2.8 billion US) bailout of Chrysler, General Motors and Ford's operations in Ontario province.

But a payout is contingent on Washington's approval of a 14-billion-dollar US aid package.
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