President Bush announced today that he would be offering US$17.4 billion in loans in exchange for concessions from American carmakers and their workers who have bared the brunt of a slumping market for the past month.
“Allowing the auto companies to collapse is not a responsible course of action,” President George W. Bush said, stating that bankruptcy for these automakers would further cripple the American economy.
The Canadian government has been patiently awaiting America’s decision on the bailout.As early as last week, Federal Industry Minister Tony Clement proposed a $4 billion bailout for automakers in Canada, but only if America were to put an offer on the table first.
One official said US$13.4 billion of the money would be available this month and next, US$9.4 billion for General Motors and US$4 billion for Chrysler. Ford Motor Company has said it does not need immediate help.