Canada open to automaker aid after deadline-report

Δημοσιεύθηκε: 28 Φεβρουαρίου 2009 - 21:21

TORONTO, Feb 28 (Reuters) - Canada's industry minister said the government is willing to negotiate an aid deal with General Motors Corp and Chrysler LLC past an end-of-March deadline, the National Post newspaper reported on its website.

The article, citing an interview with Industry Minister Tony Clement on Friday, said the Canadian government has also looked at 'Plan B' scenarios in the event one of the companies goes bankrupt.

It reported that Clement said there are signals the administration of U.S. President Barack Obama is willing to extend a March 31 deadline by which GM and Chrysler -- controlled by Cerberus Capital Management LP -- have to submit certified reports to the U.S. Treasury as a condition for U.S. government aid.

'As long as they are still viable, there's no rush,' Clement said. 'If they wanted a month extension, if that's what makes them have the best plan possible, with all of the stakeholders at the table -- CAW (Canadian Auto Workers union), U.S. government, Ontario government -- that's fine by us.'

In late December, Canada said it was prepared to provide C$4 billion ($3.2 billion) in emergency loans to the cash-strapped automakers. GM Canada is eligible for loans of up to C$3 billion under the package, while Chrysler Canada is eligible for up to C$1 billion.

General Motors on Thursday posted a loss for 2008 of nearly $31 billion and said its auditors were likely to cast doubt on its viability as it seeks an expanded federal bailout to stay afloat.

($1=1.27 Canadian)

(Reporting by Jeffrey Hodgson; Editing by Eric Walsh) Keywords: CANADA AUTOS/

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