GM Canada reacts to the letters of ministers on the viability of the automotive industry in Canada
General Motors of Canada Limited has reacted today to the letter of 27 November 2008 that the Honourable Tony Clement and the Honourable Michael Bryant sent to him, as well as Ford Canada and Chrysler Canada, about a eventual government assistance aimed at ensuring the viability of the automotive industry in Canada.
GM and other companies in the North American automotive industry has faced immense pressure as they suffer the catastrophic consequences arising from the global credit crisis on sales of vehicles in the United States and Canada, or the crisis takes momentum. Non-availability of private credit and a lack of liquidity arising from investments in restructuring push GM Canada seek financial assistance from the government.
Arturo Elias, president of GM Canada, said: "GM Canada just to supplement its restructuring program launches $ 4 billion in 2005, to become a more respectful conscientious business, the environment and more sustainable. Due to the economic conditions that knows the North America, it has now become necessary for us to ask help from the government to support our operations and our supply chain. We also work in collaboration with all key stakeholders to agree on the upcoming changes to make to the model of the company, including to the financial structure, structural costs, the costs related to pension plans and health care, to ensure the viability of GM North America . "
GM Canada is seeking financial support to stabilize its operations, to execute new mandates relating to its products Oshawa, St. Catharines and has Ingersoll, and complete the restructuring initiated in November 2005. To date, the plan restructuring of GM Canada includes major investment in Canada, the range of hybrid models in 2009 the most sophisticated in the country, plans for the manufacture of the first hybrid cars in Canada, significant structural cost reductions and capacity, as well as continued leadership in Canada in matters of car sales, procurement and environmental research and development.
In its response addressed to ministers, GM Canada has recognized the strong support and strong leadership of the Governments of Ontario and Canada's place in the automotive sector and welcomed the appointment of James Arnett as special adviser to the Government as part of the restructuring of the automotive industry. As a wholly-owned subsidiary, GM Canada has recognized the need for transparency and accountability, and provide governments with additional information in matters of finance and competition under the appropriate provisions relating to confidentiality while others are discussed restructuring plans with stakeholders GM.
General Motors of Canada (GMCL), whose registered office is situated in Oshawa, Ontario, employs 12,000 people nationwide. GM of Canada manufactures vehicles, powertrains and starts the full range of General Motors vehicles and related services through approximately 700 dealerships and retailers across Canada.
