Canada set to offer C$200 million to automakers: report

Wed Sep 3, 2008 7:55am EDT
 
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TORONTO (Reuters) - Canada's Conservative government will offer up to C$200 million ($185 million) in financial support to General Motors of Canada (GM.N: Quote) and Ford Motor Co. of Canada (F.N: Quote) days before it is expected to call a federal election, the Globe and Mail said on Wednesday.

Quoting industry and government sources, the paper said the government is also preparing announcements on aid to other sectors to boost its appeal in Ontario, where the strong Canadian dollar and weak U.S. economy have hit the manufacturing sector.

In the latest example, farm machinery maker Deere & Co (DE.N: Quote) said on Tuesday it would close a manufacturing plant in Welland, Ontario next year, and 800 jobs will go.

The Globe said the money will help support a Ford engine plant in Windsor and a GM Canada transmission plant in St. Catharines.

Prime Minister Stephen Harper is expected to seek a dissolution of Parliament in the coming days, with an election likely for October 14.

($1=$1.08 Canadian)

(Reporting by Frank Pingue)

 
<p>GM employees assemble Chevrolet Impalas after Ontario Premier Dalton McGuinty announced the creation of a C$650 million ($611 million) automotive green fund to encourage investment in environmentally friendly technology at the GM Oshawa Assembly Plant, June 19, 2007. REUTERS/J.P. Moczulski</p>