Chrysler Canada is warning Ottawa and Queen's Park that without a lifeline, it may have to shut down two Ontario assembly plants and put thousands out of work.
According to reports, the automaker mentioned the possibility of a closure in the restructuring plan it filed with government officials last week. Chrysler, which has plants in Windsor and Brampton, is asking for $1.6 billion in emergency financial help.
If the factories were to close, both cities could lose more than 8,000 jobs each.
South of the border, a $15 billion bailout for Detroit's Big Three is one step closer to completion. Negotiators worked overnight Monday to iron out differences between the parties involved.
President-elect Barack Obama has said letting the three companies collapse is "not an option."
The package, which will include extensive government oversight, could come up for a vote in Congress as early as tomorrow. Congressional leaders say their plan can keep the automakers in business at least until March.
According to the plan, Only General Motors and Chrysler would receive loans right away. Ford has said it has enough money to stay afloat unless Chrysler or GM goes under immediately, due to intertwined supply networks that serve the three companies.
