Canada Chipping In on Auto Bailout

The Loonie may only be worth 82 cents, but Detroit will take it.

Reuters is reporting that on Saturday, Canadian Prime Minister Stephen Harper will announce a multi-billion dollar bailout package to compliment the $17.4 billion in loans that Washington is giving General Motors and Chrysler.

Details of the plan have not been released, but last week Canadian government officials said they were prepared to match up to 20 percent of the U.S. bailout package in the form of aid to the carmakers' Canadian subsidiaries. Based on current exchange rates, that would amount to approximately $3.48 billion, or $4.2 billion Canadian dollars.

Chrysler manufactures some of its best-selling vehicles in Canada, including its popular minivans. General Motors has several factories north of the border building mostly crossovers and trucks.

Earlier this year, GM announced it would close its Oshawa Truck Assembly plant at the end of 2009 due to diminishing demand for full-size pickups in the United States.

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