Report: Chrysler Canada Seeks C$1 Billion in Gov’t Aid

TORONTO (Reuters) – Chrysler Canada Inc has asked the Canadian and Ontario governments for C$1 billion in financial assistance to help it through the global economic crisis, making it the first Canadian automaker to specify how much it is seeking, the Globe and Mail reported on Thursday.

However, the newspaper, citing sources, said the company had not specified what form of assistance it wants or how the payout would be split between the two levels of government.

A Chrysler Canada spokeswoman refused to comment on the company’s C$1 billion ($795.1 million) request, the Globe said.

Canadian Industry Minister Tony Clement met with executives from the Big Three auto companies in Detroit on Wednesday and is set to meet with officials in Washington on Thursday to discuss requests for a bailout for the automobile industry.

The Canadian divisions of the Big Three automakers — Ford Motor Co (F.N), General Motors (GM.N) and Chrysler — are seeking loans, loan guarantees or backing for short-term borrowings, while their parent companies look for at least $25 billion in U.S. government aid.

($1=$1.26 Canadian)

Reporting by Scott Anderson; Editing by Lisa Von Ahn