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CTV.ca News StaffThe Canadian government will provide a $3.5 billion lifeline for the Canadian auto sector, a move which aims to soften the blow of the economic downturn and preempts an American bailout plan, CTV News has learned.
The announcement follows a meeting Friday between Prime Minister Stephen Harper and Ontario Premier Dalton McGuinty in Ottawa where the two leaders hashed out a plan.
However, the fund falls short of the nearly $7 billion package which Ford, GM and Chrysler requested earlier this month.
Meanwhile, the White House said Friday it may tap into the US$700 billion banking fund to stop the "precipitous collapse" of the auto industry, a day after the Senate shot down a lifeline for the fading Detroit Three companies.
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http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20081212/ottawa_automakers_081212/20081212?hub=TopStories
Canada under increasing pressure to release auto aid package on its own
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