GM Canada Responds To Ministers' Letters Regarding
Automotive
Sustainability in Canada
OSHAWA, ONTARIO -- (MARKET WIRE) -- 12/05/08 --
General Motors of Canada Limited today responded to the November
27, 2008 letters sent to itself, Ford Canada and Chrysler Canada by
the Honourable Tony Clement and the Honourable Michael Bryant
concerning potential government assistance to ensure automotive
sustainability in Canada.
GM and others in the North American auto sector are under
extreme pressure as they respond to the unprecedented impacts of
the global credit crisis on auto sales in the U.S. and increasingly
in Canada. The unavailability of private credit and a low cash
position resulting from restructuring investments have led GM
Canada to seek government liquidity assistance.
GM Canada President Arturo Elias said, "GM Canada is just
completing a $4 billion transformational investment program in
Canada, initiated in 2005, toward becoming a lean, green and more
sustainable business. Regretfully, North American economic
conditions now make it necessary for us to seek government
assistance to sustain our business and supply chain. We will also
work together with all our key stakeholders to review and agree to
further necessary changes to our business model, including our
capital structure, structural costs, pensions and health care costs
to ensure sustainability within GM's integrated North American
business."
GM Canada requires liquidity support to stabilize its
operations, proceed with new product mandates in Oshawa, St.
Catharines and Ingersoll, complete the restructuring initiated in
November 2005. GM Canada's transformation work to date includes
major investments in Canada, its current offering of the most '09
hybrid models in Canada, plans to be the first to build hybrid cars
in Canada, significant structural cost and capacity reductions and
ongoing leadership in Canadian car sales, supplier sourcing and
advanced environmental R&D.
In its response to the Ministers, GM Canada acknowledged the
strong support and leadership of the Ontario and Canadian
governments toward the auto sector and welcomed the appointment of
James Arnett as special government advisor on automotive
restructuring. As a private wholly-owned company, GM Canada
acknowledged the need for transparency and accountability and will
also be providing the governments with additional financial and
competitive information under appropriate confidentiality
provisions as they review additional required restructuring plans
with GM stakeholders.
General Motors of Canada (GMCL) is headquartered in Oshawa
Ontario and employs 12,000 people nationwide. GM of Canada
manufactures vehicles, vehicle powertrains, and markets the full
range of General Motors vehicles and related services through
approximately 700 dealerships and retailers across Canada.
Contacts: General Motors of Canada Limited David Paterson VP
Corporate and Environmental Affairs (905) 644-6308 or Cell: (416)
294-5484 General Motors of Canada Limited Stew Low Director
Communications (905) 644-6786 or Cell: (416) 254-4224 Website:
http://media.gmcanada.com
Click here to go to Dow Jones NewsPlus, a web front
page of today's most important business and market news, analysis
and commentary:
http://www.djnewsplus.com/al?rnd=B8Ivi3kcr48MG8t2c5SWHw%3D%3D. You
can use this link on the day this article is published and the
following day. .