Prime Minister Stephen Harper and President Barack Obama announce restructuring plans to save GM

June 01, 2009

The Governments of the United States and Canada, have reviewed and approved the restructuring plans of General Motors and its subsidiaries, including GMCL in Canada.
 
As a result, thanks to the considerable contributions and sacrifices of company management, the United Auto Workers and Canadian Auto Workers, and major creditors, our Governments are in a position to extend support to help General. Motors restructure itself and become once again one of the world’s leading auto manufacturers.
 
"I want to thank the governments of Canada and Ontario for making this investment in GM alongside the United States. Our countries share a stake in this company’s future, and I look forward to our close partnership through this restructuring period," said President Obama.
 
"The Government of Canada thanks our partners, especially President Obama and the United States’ government, for their close collaboration with Canada in the restructuring of GM. This cooperation makes possible a brighter future for GM and the auto industry in both of our countries,” said Prime Minister Harper.
 
The governments of Canada and Ontario will invest $US 9.5 billion.
 
The United States will have approximately 60 percent of the equity of the restructured GM, and Canada and Ontario will have approximately 12 percent.
Canada will appoint one independent director.
 
The automotive industries in Canada and the United States are tightly linked, with major automobile manufacturers and suppliers operating on both sides of the border in a completely integrated way, which has required coordinated efforts by governments to address. The cost share between the United States and Canada reflects the shares of auto production in both countries for GM, which will be maintained under the terms of the restructuring agreement.
 
The United States and Canada are committed to continuing to work together to put the automobile industry on the road to a better future in both countries, as we seek to ensure an internationally competitive, environmentally responsible industry.