Canadian Subsidiaries Automaker Bailout

The 4 Billion Canadian Dollar loan granted by the Canadian Government and Ontario Provincial Government to General Motors Canada and Chrysler Canada is a clear set back to the U.S. Canada Free Trade agreement 1989. As a student in 1989, I clearly supported the move by the then Mr Mulroney's Tory Government for a freer trade between U.S. and Canada.

Now that the U.S. is in a bad shape, Canadians too have to suffer the consequence of failing auto industry. Though I have never been to Windsor which is the Canadian city of Detroit, I could imagine Windsor as a ghost town in January 2009 IF the Harper Government plays Adam Smith's Free Market idea.To restructure a big organization like GM in 3 months will be an excruciating job BUT I know with decades of experience GM, Chrysler and Ford either in Canada or the U.S. could rejuvenate the auto industry again.Furthermore with a zero to 0.25% Fed interest rate, North Americans may now be allowed to turn their purchases toward Big 3 compact models (even if they receive unemployment insurance).I welcome the willingness of Canadian Auto Workers to cooperate with the government and the automakers to prevent more lay offs.

I still remember reading a blog which says she is losing her home BUT she cannot afford to lose her car too! BECAUSE for homeless North Americans now their vehicles are their beds.