Ministers Clement and Day Welcome U.S. Government Support Program for Auto Suppliers

(Industry Canada)

Today [Thursday], the Honourable Tony Clement, Minister of Industry, and the Honourable Stockwell Day, Minister of International Trade, welcomed the creation of the Auto Supplier Support Program, announced by the U.S. Department of the Treasury.

Similar to the U.S. Auto Supplier Support Program, Canada already has an Accounts Receivable Insurance (ARI) program, provided by Export Development Canada (EDC), which may be used by parts suppliers to the domestic auto industry.

“Through EDC, I am proud to say that we addressed this concern early and continue to be there for auto suppliers across the country,” said Minister Clement. “As the fortunes of the Canadian auto industry are linked to the recovery of the U.S. economy, we see today’s announcement as a positive step toward restoring confidence in the supplier base at a critical time for the industry.”

In 2008, EDC provided a total of $4.2 billion in commercial facilitation to 595 Canadian companies in the auto industry through its financing and insurance products and services. Of this amount, $3.2 billion was in the form of ARI.

For more information on EDC and the ARI program is available here.