Ontario's Economic Development Minister says risk management will be on his mind when he heads to the U.S. this week to learn more about how the U.S. government intends to help the struggling North American auto industry.
"It is risk management on all sides," Economic Development Minister Michael Bryant said Tuesday. "In order to assess those risks before a decision is made, we need to see -- not just by reading reports but also by talking to people right there on the ground -- where those decisions are being made."
Bryant and federal Industry Minister Tony Clement will travel to Detroit on Wednesday and Washington on Thursday.
At present, the U.S. is considering spending up to US$25 billion to help the auto industry -- but there are some concerns that at least one of the major North American automakers may go broke before that money arrives.
Clement has suggested a collaborative Canada-U.S. bailout effort may be in order, while Bryant has said Canada should act first on behalf of both countries.
Bryant has previously said that acting first will put Canada in a better position to protect valuable Canadian auto industry jobs.
In Ontario alone, the auto industry employs 400,000 people and puts an estimated $28 billion into the provincial economy each year, CTV Toronto's Paul Bliss reported Tuesday.
Ontario Premier Dalton McGuinty has said that he is concerned that president-elect Barack Obama will make the Big Three automakers -- Chrysler, Ford and General Motors -- keep their jobs in America in order to receive financial assistance.
While McGuinty would not talk about those concerns Tuesday, he did talk about his concerns that one of the major North American automakers may go bankrupt in the near future.
He told reporters at Queen's Park Tuesday that he'd "prefer not to have to deal" with any of the Big Three going bankrupt, but said "it might happen."
"If a company goes bankrupt, just ask ourselves as consumers how eager we are to purchase that product?" McGuinty asked.
"What has happened to the quality of the brand? What questions are going to be raised in our own minds about warranties and guarantees?"
Meanwhile, McGuinty said foreign automakers Honda and Toyota have told him they support government assistance for their North American competitors.
McGuinty said both Japanese automakers said the collapse of one of the Big Three could produce "supplier shock."
He said they fear parts suppliers would not be able to sustain themselves if one of the Big Three failed.
Ontario Progressive Conservative Leader John Tory said he doesn't like the word "bailout."
He said the government needs to provide incentives for innovation and new products that are going to keep the auto industry going for a long time.
"That's a proper use of the taxpayer's money," Tory told reporters.
With files from CTV Toronto and The Canadian Press
