(picture of Daimler Chrysler's Canadian headquarters in downtown Windsor, Ontario, taken by me last month)
Despite the heavy emphasis on the Big Three in the United States, each company has a significant stake in Canada, some of that literally across the Detroit River in Windsor, Ontario.
While the big news was that the United States government is taking a 60% stake in General Motors, the Canadian federal and Ontario provincial governments are taking a 12% stake in the fledgling auto company. The federal government will take 2/3 of the shares and Ontario gets 1/3.
Southern Ontario, an area that feels ignored by the rest of the country (and the province), is heavily depended on the auto industry, whether that be auto plants or companies that make parts for cars or businesses that rely on those workers for shopping and consuming.
One intriguing contrast between the two countries is that while U.S. President Barack Obama is optimistic about that country getting its investment back, Canadian Prime Minister Stephen Harper isn't optimistic.
But the reality of letting GM completely go under would have been devastating for parts of the U.S. Midwest and Canada's Southern Ontario.
Canada's other big automotive news came with the announcement that the Magna auto parts company acquired a 20% stake in GM's European operations with the Opel line.
This becomes significant because it could mean more cars being built in Canada. However, General Motors required in the deal that Opel cars not be sold in the United States. Theoretically, they could be sold in Canada.
Even if everything goes right, the process will be difficult to make Opel cars even in Canada.
Magna is run by Frank Stronach. His daughter, Belinda, might be one of the few Canadian politicians you have heard of. When Stronach crossed the floor (changed parties) from the Conservatives to the Liberals in 2005, she also broke up with fellow Conservative PM Peter MacKay, who subsequently held a press conference with his dog by his side.
