December 9, 2008 - Chrysler Canada Inc., Windsor Ontario

Chrysler Canada Inc. may close its two assembly plants in Canada unless the Canadian and Ontario governments provide C$1.6 billion ($1.27 billion) in emergency aid, the Globe and Mail reported, citing a restructuring plan filed last week.

Chrysler Canada Inc. may close its two assembly plants in Canada unless the Canadian and Ontario governments provide C$1.6 billion ($1.27 billion) in emergency aid, the Globe and Mail reported, citing a restructuring plan filed last week.

Chrysler, Ford Motor Co. of Canada Ltd., and General Motors of Canada Ltd. have asked for C$6 billion in loans, loan guarantees and lines of credit; the three automakers may need as much as C$7.2 billion if the auto market deteriorates and GM Canada needs to draw down C$1.2 billion in addition to the C$2.4 billion the company requested, the newspaper said.

Canadian government and industry officials have expressed concern that U.S. aid for the automakers may come with conditions that favor their domestic operations, the newspaper said.

Original Story - Bloomberg