The government of Canada and the Province of Ontario offered the auto industry 4 billion Canadian dollars in emergency loans on Saturday.
Depending on currency fluctuations, the amount is roughly equal to 20 percent of the Bush administration’s bailout plan as well as Canada’s portion of North American auto production.
Dalton McGuinty, the Premier of Ontario, said that a collapse of the auto industry would create “a huge problem” for the Canadian economy.
“There are literally across the country hundreds of thousands, if not millions, of potentially affected families by the distress of this industry,” McGuinty said.
The Canadian auto industry, which exports about 90 percent of its production, accounts for a greater percentage of Canada’s manufacturing economy than its parent companies contribute to that of the United States.
Many American and Japanese automakers operate factories in Ontario, and so do parts makers that feed plants throughout North America.
A loss of the American manufacturers would be a particularly severe blow to Ontario, the most populous province and the home to all of Canada’s auto assembly plants. About 400,000 people in Ontario work in the industry, Mr. McGuinty said.
In addition to the loans, Mr. Harper announced that the government would extend additional insurance to auto parts makers for money owed to them by automakers, and develop a program to finance consumer loans for new car purchases.