Ottawa willing to let GM, Chrysler collapse

[CHIMO]

Source: Globe and Mail

TORONTO — Ottawa is prepared to let Canada's two financially troubled car makers collapse rather than provide long-term financing to companies without a viable future, Industry Minister Tony Clement said Thursday as he ratcheted up the pressure on the Canadian Auto Workers union to negotiate new deals to slash wages and benefits.

Mr. Clement told a news conference in Toronto he believes Fiat SpA is taking a “logical position” in demanding wage concessions in Canada before following through with a proposed strategic alliance with Chrysler LLC. He added Ottawa is also unwilling to make major investments in companies that do not have appropriate cost structures to survive in the long term.

When asked whether he would be willing to let Chrysler Canada Inc. or General Motors of Canada Ltd. go bankrupt if the unions do not agree to cut costs, Mr. Clement replied: “We have to examine every possibility.”

“I don't think it is in the interest of the Canadian public to have continued funding to a company if there is no deal with their union and if there is no outside investor, or no outside partner in the case of Fiat,” he said. “Those were our conditions.... So if you're asking me whether I'm willing to funnel Canadian government money, taxpayer money, when we do not have an acceptable plan on a go-forward basis, I cannot do that. I don't think it would be responsible.”



Read more: http://business.theglobeandmail.com/servlet/story/RTGAM.20090416.wclementstaff0416/BNStory/Business/home

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Anything to kill the unions.

So we will all have to buy imported cars from Japan and everywhere else. But at least the unions will be gone.