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GM Receives C$500 Million Loan in Canada

General Motors has just made another step towards its restructuring plan in Canada with the help of Export Development Canada, who agreed to provide up to C$500 million to the American automaker. However, General Motors has been asked to continue its operations in the region in normal conditions and avoid cost-cutting measures that could affect its employees as much as possible.

Obviously, General Motors is absolutely pleased with the agreement it has reached with the Canadian officials and emphasized that it will continue the restructuring process according to the initial plans.

"GM Canada appreciates the support of the federal and Ontario governments as we work to complete our transformation into a leaner, customer focused and more cost-competitive operation," GM Canada president Arturo Elias said according to Just-auto.com.

"We are making very tough but necessary changes while remaining focused on providing our customers with the best new vehicles in our history."

General Motors is now facing the May 30 deadline to revise the restructuring plan it has sent to officials on March 30.

"GM Canada continues to work with the governments and its key stakeholders to take the necessary actions needed to meet the requirement for an updated restructuring plan for long-term viability by 30 May, 2009," General Motors said in a statement.

Although it may seem like GM follows the same path as Chrysler, reports regarding a possible bankruptcy are by far fewer compared to Fiat's new ally. Nevertheless, Chapter 11 is still an option for General Motors as Fritz Henderson, GM's newly-apointed CEO, stated just after the departure of Rick Wagoner.

 
 
 
 
 

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