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GM, Chrysler submit Canadian turnaround plans

General Motor is asking for up to 7.5 billion Canadian dollars (6.0 billion US) in financial aid.

Chrysler is in negotiations for one billion dollars (800 million US), said Canadian officials.

GM said in a statement it would maintain between 17 and 20 percent of its North American production in Ontario until 2014, and would not close any more plants in the Canadian province at this time.

In return, it has asked the Canadian and Ontario governments for a bailout "proportional" to the 37.5 billion dollars (30 billion US) requested from Washington.

A Canadian bailout of GM would thus amount to 6.4 to 7.5 billion dollars (5.1 to 6 billion US), based on production levels in both countries.

"Over the coming weeks we'll be evaluating the plan ... to ensure that they contain viable long-term solutions that will sustain the industry well into the future," Industry Minister Tony Clement told a press conference.

"I have had an opportunity to review the preliminary plans and I'm pleased to see the commitments made by GM with respect to their Canadian operations."

He added, however, the Canadian government is to "stick to (its) guns when it comes to (the bailout) being in the form of a loan."

Chrysler was expected to submit a restructuring plan for its Canadian operations by Friday's deadline, but instead offered the same proposal previously handed to US officials.

Clement explained Chrysler chose to focus on an "integrated" North America-wide restructuring and indicated to the government that it did not want to create a separate plan for its Canadian operations.

Chrysler would however continue to negotiate with Ottawa for a one billion dollar bridge loan it had previously requested, he said.

GM said it aims to cut costs, reduce pay and benefits of its 12,000 salaried workers in this country and the pensions of its 56,000 retired employees. GM executives meanwhile would take a 10 percent pay cut.

Its plan also touts the launch of five new vehicles to be built in Canada, and advanced research and development of electric vehicles.

Bailout talks with Canadian and Ontario governments and with the Canadian Auto Workers union for wage concessions are to wrap up in March.

Chrysler LLC said Tuesday it needed another five billion dollars US in loans from Washington in order to survive a dramatic collapse in global auto sales.

The troubled automaker insisted, however, that it will be able to repay the four billion US dollar loan it has already received and that it is well on the path to achieving long-term viability.

"People are going to be driving cars for the foreseeable future, and I am optimistic that they're going to be driving cars in Canada made by Canadians," commented Michael Bryant, Ontario's minister of economic development.