$3.3 billion Canadian bailout plan for auto industry - but strings are attached

Nothing is for sure here as of yet, but CBC reports that the federal government and the province of Ontario have come to an agreement to offer a $3.3 billion bailout package to the auto sector. But this agreement relies on the US passing their own bailout plan, which is easier said than done.

The U.S. [$14 billion] bailout appeared to have died late Thursday night after hours of heated negotiations between lawmakers, representatives from automakers and unions.

The Canadian segments of the Detroit Big Three also need to find a long term solution for their industry's woes. Again, it is less than certain that they can commonly agree on any type of measures that would see unions offer up some of their employees benefits, for example, in order to save their sector.

But if they were to meet these demands, then we will likely be headed toward a deficit, which Minister Flaherty is now willing to admit. This positioning is good, it shows willingness to cooperate, but at a cost to those seeking help.

"As we prepare to present the next budget [on Jan. 27], the challenge we are facing is how to fix a short-term problem without creating a long-term problem for our country."

In my opinion, we cannot support with taxpayer dollars a failing sector, unless it is willing to completely revamp itself in order to become self-sufficient again, in the near future. Like others have said before me, many other car manufacturers have come and gone. And as sad as it can be for the employees laid off, sometimes you simply have to get with the times.