Clement to Canadian automakers: "If you don't need the money that's fine too."

The Canadian branches of General Motors Corp. and Chrysler LLC have yet to show progress in their restructuring, deplored Industry Minister Tony Clement. Despite having $4 billion in government loans to draw from, the fund has remained untouched by the two companies.

"One would have thought we would have been at the conclusion of this phase [restructuring] by now, we're not," the Minister said after a speech in Toronto. "I'm signalling to them: let's get a move on.

"If you need the money, let's flow the money. If you don't need the money that's fine too."

The companies have until February 20 to demonstrate they have rendered their operations profitable again, at which point – if this demonstration fails – these loans could be reneged or called in.

Clement is extremely surprised that after almost a month, neither company had taken loans. What explains this delay in action, and even more, the lack of demand for federal loans? Weren’t these companies desperate for help? It sure seemed so a month ago.

Auto worker wage cuts out of the question

CAW president Ken Lewenza is surprised that cuts to Canadian auto employee wages are discussed as part of the restructuring needs of the sector.

Bloomberg quotes:

“I resent the fact that wages are even getting any discussion because in Canada, 7 percent of the cost of a vehicle is related to wages,” the Canadian Auto Workers chief said today in a Bloomberg Television interview.

The $4 billion bailout package approved by the province of Ontario and the federal government is dependant on the industry making some significant changes, in order to become competitive once again. The deadline for Canadian restructuring proposals is February 20, by which point Chrysler and GM must demonstrate "acceptable evidence" their plans will proceed by March 31.