Canadian taxpayers are being asked to provide at least $6-billion to the Detroit Three auto makers – and the two most troubled companies say they need a big chunk of the money immediately.

The total bill could soar to $7.2-billion if conditions worsen, the three auto giants told Ontario and Ottawa as they submitted requests for money to help them restructure amid the most serious crisis the auto industry has faced in generations.

General Motors of Canada Ltd. has asked for $2.4-billion in loans, with $800-million of that necessary before the end of the year. Chrysler Canada Inc. needs even more than that in the next three weeks, seeking $1.6-billion by Jan. 1, sources knowledgeable about the company's plans said.

Ford Motor Co. of Canada Ltd. asked for $2-billion but said it would only use the line of credit if conditions worsen.

The requests for assistance arrived in Ottawa one day after the political crisis was settled – at least temporarily – by the suspension of Parliament until late January.

“Cabinet still functions while the House is not sitting,” said a spokesman for Industry Minister Tony Clement, when asked whether Ottawa could provide financing while the House of Commons is not sitting. In fact, the government has provided more than $25-billion in liquidity for Canada's banks without seeking approval of Parliament.

The Commons will eventually have to approve such spending.

Mr. Clement said no decision on aid has been made.

A federal source suggested the companies still need to line up support from dealers, unions and suppliers.

“Before committing taxpayer dollars, we need to review the plans to ensure that they have met our requirements and contain a long-term solution that sustains the industry in Canada,” Mr. Clement said in a statement last night.

The Conservatives are unlikely to face opposition to an auto bailout from the three parties that sought to unseat Prime Minister Stephen Harper this week. The Liberals and New Democrats – supported by the Bloc Quebecois – had pledged to provide assistance to the manufacturing sector, including the auto industry, if their coalition had succeeded.

“The numbers are going to seem big to taxpayers because they are big,” Ontario Economic Development Minister Michael Bryant said Friday.

The auto sector is vital to Ontario's economic prosperity, Mr. Bryant said, but noted, “I'm as skeptical as anybody would be and should be when it comes to governments using taxpayer dollars to loan money to any industry.”

News releases from Chrysler and Ford offered few details of what the companies would actually do with the money.

“We're asking for the money to sustain our business,” said David Paterson, GM's vice-president of corporate affairs. The $2.4-billion figure is based on vehicle markets in Canada and the United States improving slightly next year.

An additional $1.2-billion from governments will be needed if markets deteriorate further, Mr. Paterson said.

GM requires “liquidity support to stabilize its operations, proceed with new product mandates in Oshawa, St. Catharines and Ingersoll [to] complete the restructuring initiated in November, 2005,” the company said in a statement. GM has a car assembly plant in Oshawa, Ont. – a truck plant there is scheduled to close next year – a crossover utility vehicle factory in Ingersoll, Ont., and an engine plant in St. Catharines, Ont.

Ford Canada president David Mondragon said in a statement: “The company believes it has the liquidity to weather the current economic crisis, however, it is asking for access to government-backed loans in case the economy significantly worsens, or in the event that a major competitor is forced into bankruptcy.”

Chrysler president Reid Bigland said his company is requesting a temporary, repayable loan from the two governments with two aims.

“First, to ensure Chrysler has sufficient funds to complete our restructuring activities during what is an unprecedented downturn in vehicle sales caused by the global financial crisis and second, to ensure Chrysler Canada's substantial Canadian manufacturing and operational footprint is protected,” Mr. Bigland said.

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