GM Canada Responds To Ministers' Letters Regarding Automotive Sustainability in Canada

GM Canada Responds To Ministers' Letters Regarding Automotive

Sustainability in Canada 
 

OSHAWA, ONTARIO -- (MARKET WIRE) -- 12/05/08 --

General Motors of Canada Limited today responded to the November 27, 2008 letters sent to itself, Ford Canada and Chrysler Canada by the Honourable Tony Clement and the Honourable Michael Bryant concerning potential government assistance to ensure automotive sustainability in Canada.

GM and others in the North American auto sector are under extreme pressure as they respond to the unprecedented impacts of the global credit crisis on auto sales in the U.S. and increasingly in Canada. The unavailability of private credit and a low cash position resulting from restructuring investments have led GM Canada to seek government liquidity assistance.

GM Canada President Arturo Elias said, "GM Canada is just completing a $4 billion transformational investment program in Canada, initiated in 2005, toward becoming a lean, green and more sustainable business. Regretfully, North American economic conditions now make it necessary for us to seek government assistance to sustain our business and supply chain. We will also work together with all our key stakeholders to review and agree to further necessary changes to our business model, including our capital structure, structural costs, pensions and health care costs to ensure sustainability within GM's integrated North American business."

GM Canada requires liquidity support to stabilize its operations, proceed with new product mandates in Oshawa, St. Catharines and Ingersoll, complete the restructuring initiated in November 2005. GM Canada's transformation work to date includes major investments in Canada, its current offering of the most '09 hybrid models in Canada, plans to be the first to build hybrid cars in Canada, significant structural cost and capacity reductions and ongoing leadership in Canadian car sales, supplier sourcing and advanced environmental R&D.

In its response to the Ministers, GM Canada acknowledged the strong support and leadership of the Ontario and Canadian governments toward the auto sector and welcomed the appointment of James Arnett as special government advisor on automotive restructuring. As a private wholly-owned company, GM Canada acknowledged the need for transparency and accountability and will also be providing the governments with additional financial and competitive information under appropriate confidentiality provisions as they review additional required restructuring plans with GM stakeholders.

General Motors of Canada (GMCL) is headquartered in Oshawa Ontario and employs 12,000 people nationwide. GM of Canada manufactures vehicles, vehicle powertrains, and markets the full range of General Motors vehicles and related services through approximately 700 dealerships and retailers across Canada.

Contacts: General Motors of Canada Limited David Paterson VP Corporate and Environmental Affairs [phone] or Cell: [phone] General Motors of Canada Limited Stew Low Director Communications [phone] or Cell: [phone] Website: http://media.gmcanada.com

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