Auto Industry rebounds and repays Canadian Taxpayers

April 21, 2010

Ottawa – Cathy McLeod, Member of Parliament for Kamloops – Thompson – Cariboo today acknowledged that General Motors of Canada had repaid its loans to the Government of Canada.

General Motors Company Chairman and CEO Ed Whitacre announced that GM has made its final payment of $1.1 billion to Export Development Canada, paying back its government loan in full and ahead of schedule.

“The Government of Canada took steps last year to make sure the North American automotive industry would survive the economic downturn,” said McLeod. “The fact that GM has announced investments of more than $1.5 billion at 20 facilities in the US and Canada and increased production at its facilities in Oshawa and Ingersoll, demonstrates that the Canadian auto industry is now on the right track.”

The Government of Canada provided funding to General Motors during last year’s economic downturn. This funding was intended to help advance the company’s efforts to restructure, while maintaining Canada’s share of General Motors’ North American production and ensuring strong investment in research and development.

In addition, the federal government took steps to support the auto industry as a whole, including investing in communities hardest hit by the recession, building on corporate income tax reductions for business and enabling further investments in productivity- enhancing machinery and equipment.

“We have to remember that the auto industry directly employed more than 109,000 Canadians as well as another 333,000 indirectly.  It is Canada’s largest manufacturing sector and I’m pleased that we were able to deliver for the auto industry in their hour of need. Today, they have not only ensured the long term viability of the auto industry in Canada, but respected the Canadian taxpayer by paying their loan in full and ahead of schedule,” concluded McLeod.