OTTAWA, November 28, 2008 - Today, the Honourable Tony Clement, Minister of Industry, and the Honourable Michael Bryant, Ontario's Minister of Economic Development, sent co-signed letters to Chrysler Canada Inc.; Ford Motor Company of Canada, Limited; and General Motors of Canada Limited requesting receipt of their respective restructuring plans for their North American operations.
"The Government of Canada recognizes the strategic importance of the Canadian auto industry and the challenging financial conditions that it is facing," said Minister Clement. "Before we consider committing taxpayer dollars, the government needs to see solid, sustainable plans from the automakers as they pertain to Canadian operations."
"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 Minister Bryant. "Taxpayers deserve that these companies detail solid plans for a prosperous future in Ontario, and I'm confident we'll get that."
In their letters, the two ministers requested receipt of the companies' restructuring plans no later than December 5, 2008.
For further information (media only), please contact:
Pema Lhalungpa
Press Secretary
Office of the Honourable Tony Clement
Minister of Industry
613-995-9001
Greg Crone
Office of the Honourable Michael Bryant
Minister of Economic Development of Ontario
416-326-9345
Media Relations
Industry Canada
613-943-2502
Mr. David Mondragon
President and Chief Executive Officer
Ford Motor Company of Canada, Limited
The Canadian Road
Oakville, ON L6J 5E4
Fax: 905-845-6877
Dear Mr. Mondragon:
This letter is a follow up to our recent meetings.
The Governments of Canada and Ontario recognize both the importance of the automotive industry to our long-term economic success and the pressing challenges that you face.
We note that you have requested immediate financing support from the Government of the United States and that Congressional leadership has requested that you submit detailed restructuring plans for their consideration by December 2, 2008. We note as well that they have asked that your plans address issues of long-term viability, transparency and accountability, and environmental standards.
Our Governments share concerns regarding the long-term viability of Canada's auto sector and thus want to understand how your Canadian operations fit within your overall restructuring plan. Your representatives have also made public statements indicating that the Canadian and Ontario governments should also provide some form of assistance.
We are therefore requesting that by no later than December 5, 2008, you provide us with your overall restructuring plan for Ford Motor Company of Canada, Limited.
Specifically, your plan should include:
- A strategic analysis of your restructuring plans for Canadian operations
- A financial assessment of your current operating cash position and short-term liquidity situation, capital structure and asset position as well as an analysis of how you propose the meet your financing needs going forward through the restructuring process
- An analysis of your Ontario Pension Liability
- An examination of the effect of your restructuring plan on Canadian suppliers and distributors
- A plan for the product mix of your Canadian production going forward, including how you will ensure the production of energy efficient cars in Canada
- Your analysis of Canadian and Ontario competitiveness vis-à-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
Our officials will analyse your plan, under appropriate non-disclosure agreements, and we would expect full cooperation with them and any external experts that they may require.
Thank you for your prompt attention to this matter.
Sincerely,
The Honourable Tony Clement, P.C., M.P.
The Honourable Michael Bryant, M.P.P.
Mr. Reid Bigland
President and Chief Executive Officer
Chrysler Canada Inc.
One Riverside Drive West, CIMS 240-15-00
Windsor, ON N9A 4H6
Fax: 519-973-2201
Dear Mr. Bigland:
This letter is a follow up to our recent meetings.
The Governments of Canada and Ontario recognize both the importance of the automotive industry to our long-term economic success and the pressing challenges that you face.
We note that you have requested immediate financing support from the Government of the United States and that Congressional leadership has requested that you submit detailed restructuring plans for their consideration by December 2, 2008. We note as well that they have asked that your plans address issues of long-term viability, transparency and accountability, and environmental standards.
Our Governments share concerns regarding the long-term viability of Canada's auto sector and thus want to understand how your Canadian operations fit within your overall restructuring plan. Your representatives have also made public statements indicating that the Canadian and Ontario governments should also provide some form of assistance.
We are therefore requesting that by no later than December 5, 2008, you provide us with your overall restructuring plan for Chrysler Canada Inc.
Specifically, your plan should include:
- A strategic analysis of your restructuring plans for Canadian operations
- A financial assessment of your current operating cash position and short-term liquidity situation, capital structure and asset position as well as an analysis of how you propose the meet your financing needs going forward through the restructuring process
- An analysis of your Ontario Pension Liability
- An examination of the effect of your restructuring plan on Canadian suppliers and distributors
- A plan for the product mix of your Canadian production going forward, including how you will ensure the production of energy efficient cars in Canada
- Your analysis of Canadian and Ontario competitiveness vis-à-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
Our officials will analyse your plan, under appropriate non-disclosure agreements, and we would expect full cooperation with them and any external experts that they may require.
Thank you for your prompt attention to this matter.
Sincerely,
The Honourable Tony Clement, P.C., M.P.
The Honourable Michael Bryant, M.P.P.
Mr. Arturo Elias
President and Managing Director
General Motors of Canada Limited
1908 Colonel Sam Drive
Oshawa, ON LlH 8P7
Fax: 905-644-4686
Dear Mr. Elias:
This letter is a follow up to our recent meetings.
The Governments of Canada and Ontario recognize both the importance of the automotive industry to our long-term economic success and the pressing challenges that you face.
We note that you have requested immediate financing support from the Government of the United States and that Congressional leadership has requested that you submit detailed restructuring plans for their consideration by December 2, 2008. We note as well that they have asked that your plans address issues of long-term viability, transparency and accountability, and environmental standards.
Our Governments share concerns regarding the long-term viability of Canada's auto sector and thus want to understand how your Canadian operations fit within your overall restructuring plan. Your representatives have also made public statements indicating that the Canadian and Ontario governments should also provide some form of assistance.
We are therefore requesting that by no later than December 5, 2008, you provide us with your overall restructuring plan for General Motors of Canada Limited.
Specifically, your plan should include:
- A strategic analysis of your restructuring plans for Canadian operations
- A financial assessment of your current operating cash position and short-term liquidity situation, capital structure and asset position as well as an analysis of how you propose the meet your financing needs going forward through the restructuring process
- An analysis of your Ontario Pension Liability
- An examination of the effect of your restructuring plan on Canadian suppliers and distributors
- A plan for the product mix of your Canadian production going forward, including how you will ensure the production of energy efficient cars in Canada
- Your analysis of Canadian and Ontario competitiveness vis-à-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
Our officials will analyse your plan, under appropriate non-disclosure agreements, and we would expect full cooperation with them and any external experts that they may require.
Thank you for your prompt attention to this matter.
Sincerely,
The Honourable Tony Clement, P.C., M.P.
The Honourable Michael Bryant, M.P.P.
