TORONTO - Ontario Premier Dalton McGuinty says the federal and provincial governments will likely have to provide an interim relief package for automakers as soon as the U.S. finalizes its own plan.
Ontario and Canada will be under pressure to respond, he says, if Washington comes forward with a package later this week.
But he says the province won't have any kind of knee-jerk reaction following reports that Chrysler is threatening to close its Canadian plants if it doesn't get the aid it has requested.
McGuinty says taxpayers should be prepared to see more job losses, even with an aid package, because the Canadian auto industry is in need of, and headed toward, more restructuring.
The Detroit Three automakers are seeking a total of $6.8 billion in loans and credit lines from Ottawa and Ontario, saying they need some of that money before the end of the year as they struggle with a worsening economy.
The U.S. is trying to sort out the terms of a $15-billion bailout for automakers that's expected to come to a vote as early as Wednesday.
McGuinty said he remains "convinced" that Ottawa and Ontario will have to find a way to lend support to the auto sector, and he is continuing to working with the federal government to protect the 400,000 jobs at stake in the province.
The premier said the province won't have a knee-jerk reaction to the requests of the automakers, but warned taxpayers should be prepared to see more job losses - even with an aid package - because the Canadian auto industry is in need of more restructuring.
"Government alone can't make up for a dramatic decrease in demand for auto products, so there will be some more restructuring in the auto sector," McGuinty said.
"It's not viable as it exists at present."
Canadian Auto Workers Union president Ken Lewenza, who was in Ottawa meeting with federal Industry Minister Tony Clement about securing help for the automakers, said his union is willing to compromise in order to save jobs.
"The real question is, is the CAW going to play an active role ensuring investment doesn't get pulled out of Canada as a result of labour rates?" Lewenza said.
"We made a commitment to the minister we will be part of the solution."
Lewenza said he received no assurance from Clement about federal aid, but believes the minister is concerned about the dire straits the industry finds itself in.
All three automakers have pleaded with the American and Canadian governments for substantial financial aid to stave off bankruptcy and avert the loss of hundreds of thousands of jobs.
Ontario, the heartland of the Canada's auto industry, would be the hardest-hit province if one of the Detroit Three filed for bankruptcy.
