Canada May Bail Auto Industry Out

Canada has set up a possible bail out loan for the auto industry in Canada, but only if the money comes through in Washington (found via GreenCarCongress).

The federal government and Ontario have reached a deal to offer proportional funds to Canada's auto industry if a proposed $14-billion US aid package is approved in Washington, Industry Minister Tony Clement said Friday.

Speaking to reporters in Toronto, Clement said the proposed aid to Canada's ailing auto sector would amount to approximately 20 per cent of the U.S. proposal, or about $3.3 billion Cdn.

The pre-emptive move by Ottawa and Ontario will make it harder for U.S. lawmakers to strike a deal that protects American jobs at the expense of Canadian ones, said veteran auto analyst Dennis DesRosiers.

For someone from the US, I got a real kick by the final few paragraphs.  With the possible money going to kickstart the economy, the government was warning they may be heading into a deficit.