Government of Canada

Government of Canada
Government of Ontario

Government of Ontario

April 21, 2010 12:02 ET

Ministers Clement and Pupatello Acknowledge GM Loan Repayments

OTTAWA, ONTARIO--(Marketwire - April 21, 2010) - The Honourable Tony Clement, Minister of Industry, and the Honourable Sandra Pupatello, Ontario Minister of Economic Development and Trade, today acknowledged that General Motors of Canada Limited (GMCL) has repaid its loans to the governments of Canada and Ontario in full. Both levels of government continue to hold common and preferred shares in General Motors Company.

"The governments of Canada and Ontario took measured steps last year to make sure the North American automotive industry remained viable and sustainable," said Minister Clement. "The fact that GMCL is increasing production at its facilities in Oshawa and Ingersoll, as well as the recent positive announcements made by other auto companies, shows the Canadian auto industry is starting to regain momentum."

Both governments 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.

"This is very good news," said Minister Pupatello. "GMCL has made its final loan payment to Ontario well ahead of schedule. Last year, our government responded quickly to successfully support GMCL through a very critical period. We're pleased to see that the company is ramping up production and planning for long-term growth. The auto sector remains vital to Ontario's economy, and it's encouraging to see the recent production announcements and positive forecasts our automakers have made."

In addition to the financial support provided to GMCL, 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.

The Ontario government also took steps to support the auto industry as a whole. The province made investments in communities most affected by the recession and introduced the most comprehensive tax modernization in its history, which included phasing out the capital tax on investment and eliminating the small business deduction surtax, enabling further investments in productivity-enhancing machinery and equipment.

While GMCL has repaid its loans in full, the company is still committed to its production obligations, investments in its Canadian operations, and research and development in Canada.

In 2009, the auto industry directly employed more than 109 000 Canadians as well as another 333 000 indirectly. It is Canada's largest manufacturing sector, representing 10 percent of our manufacturing output and 11 percent of manufactured exports.

More detailed information on the interim loans provided to GMCL can be found on the Industry Canada website (www.ic.gc.ca/eic/site/ic1.nsf/eng/04535.html).

Contact Information

  • Office of the Honourable Tony Clement
    Minister of Industry
    Lynn Meahan - Press Secretary
    613-995-9001
    or
    Industry Canada
    Media Relations
    613-943-2502
    or
    Office of the Honourable Sandra Pupatello
    Minister of Economic Development and Trade of Ontario
    Leigh-Ann Popek
    416-325-0362