OTTAWA (Reuters) - A cost-cutting deal between the Canadian Auto Workers union and General Motors Corp that was reached in March is no longer sufficient to ensure the viability of GM’s Canadian operations and more cuts are needed, Industry Minister Tony Clement told Reuters on Wednesday.
“The general determination is, given the deterioration of the market even since that moment (March), there is no question that for GM to be viable there has to be more on the table,” Clement said.
“We’re at a very critical juncture. Over the next 48 to 72 hours there’s a lot that has to fall into place and then we’ll make a determination on where we stand,” he said.
To qualify for billions of dollars in government aid, GM has until the end of the month to secure major concessions from its stakeholders and come up with a business plan that Washington and Ottawa find acceptable.
Reporting by Randall Palmer; writing by Louise Egan; editing by Peter Galloway