According to recent findings of federal auditors, Canada’s government had very little overall information concerning the restructuring strategies of the two Detroit automakers back in 2009.
With two of the largest global automakers on the brink of collapse, General Motors and Chrysler were taken into a government sponsored bankruptcy procedure that led to the creation of New GM and the acquisition of Chrysler Group LLC by Italy’s Fiat SpA. Now, following an investigation made by federal auditors, it appears that Canada also was given limited info about the recovery plans of General Motors and Chrysler Group as the country’s government supported the companies with a C$13.7 billion ($12.1 billion) bailout.
Ina report that was just made public, the Auditor General of Canada said that back then the government wasn’t forwarded the carmakers’ complete restructuring plans before giving them the loans, even though the legislators imposed that as a condition when they negotiated the deal. Total loans from the Canadian and Ontario governments given to general Motors were of C$10.8 billion, while Chrysler was awarded the rest of C$2.9 billion. So far, the governments only recuperated C$3.8 billion from GM and C$1.7 billion from Chrysler, though Canads still has about C$9.8 billion in GM – it’s now converted into equity and has 110 million shares.
Via Automotive News