WASHINGTON (AFP) — The Big Three US automakers must come up with "solid, clear, accountable business plans" to survive a sales slump and current financial turmoil, Canada's industry minister said Thursday.
"The current situation can only be resolved with solid, clear, accountable business plans from the automakers and their stakeholders," Industry Minister Tony Clement said after meeting with executives of Ford, Chrysler and General Motors in Detroit, and top officials in Washington about a bailout.
"The North American automakers were restructuring before the current economic situation, and what the global financial situation has done is accelerate their need for a new business model," he said.
"On both sides of the border, recognizing that we do indeed have an integrated market for this industry, the companies and the unions need to come up with a plan for the industry's long-term success."
"Now, at some point, governments may decide to be part of that, but let me stress that no one wants to be back to where we are here today one year from now."
General Motors, Chrysler and Ford employ roughly 40,000 Canadians at its assembly plants in Ontario province, and are responsible for an estimated 300,000 direct and indirect jobs in the country, including parts suppliers.
Last year, Ontario automakers built some 2.5 million vehicles in Canada, more than any US state, including Michigan.
And the Big Three's failure, according to the head of the Canadian Auto Workers' union, would be a "devastating blow" to the Canadian economy.
Clement said: "We are examining our options to respond to this economic situation in the auto sector."
"All options are on the table," he added. "The only option that's been kicked off the table is a no-strings attached bailout. That's out."
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