TORONTO - The federal and Ontario governments have set a deadline of Dec. 5 for struggling automakers seeking financial support to crack open their books.
The two governments are asking top Canadian executives at the Detroit Three automakers to provide detailed financial information and a restructuring plan for their Canadian operations.
The letter, signed by federal Industry Minister Tony Clement and Ontario Economic Development Minister Michael Bryant, was sent Friday to General Motors, Ford and Chrysler.
All three automakers have pleaded to the American and Canadian governments for substantial financial aid to stave off bankruptcy and avert the loss of hundreds of thousands of jobs.
Their chief executives are heading back to Washington on Dec. 2 to show their restructuring plans to American lawmakers. Congress is expected to vote on whether to give them US$25 billion in government-backed loans the following week.
Clement and Bryant's letter asks the Canadian automakers to reveal their production plans, including how they will "ensure" that energy efficient cars are being made in Canada.
"Taxpayers deserve that these companies detail solid plans for a prosperous future in Ontario, and I'm confident we'll get that," Bryant said.
An analysis of "Canadian and Ontario competitiveness vis-a-vis your global operations, including each major component of your cost structure, and how it can be adjusted to ensure our competitive position going forward" is required, the letter states.
"Before we consider committing taxpayer dollars, the government needs to see solid, sustainable plans from the automakers as they pertain to Canadian operations," said Clement.
The automakers must also provide an analysis of its Ontario pension liability, it said.
Clement and Bryant were in Detroit and Washington last week to meet with auto executives to discuss a possible U.S. bailout for the battered industry.
But the two were relegated to talking to policy officials for Nancy Pelosi, Barney Frank and other prominent Democrats as the lawmakers dealt with all manner of economic crises, including a plummeting stock market and approving new legislation to keep unemployment cheques flowing through December.
Both disputed suggestions that their visit was pointless since they failed to meet with any powerful Democrats face-to-face.
Should the North American auto industry collapse, hundreds of thousands of jobs in both the U.S. and Canada would be threatened.
Ontario, the heartland of the Canada's auto industry, would be the hardest-hit province if one of the Big Three automakers filed for bankruptcy -- something that's considered a genuine threat now that the bailout is on hold.
It would be a devastating blow to the province, which is already facing a $500-million deficit and will become a have-not province next year when it begins to collect equalization payments from Ottawa.
"The auto industry has provided jobs for Ontarians and has been a key contributor to the success of our province for almost a century," said Bryant.
