July 21, 2011
Archived - Governments of Canada and Ontario Announce the Divestiture of the Government of Canada’s Remaining Interests in Chrysler
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Today, the Honourable Jim Flaherty, Minister of Finance for Canada and the Honourable Dwight Duncan, Minister of Finance for Ontario, announced the divestiture of Canada’s remaining interests in Chrysler Group LLC.
“Chrysler’s recent repayment of its loans was an important step in the turnaround of this company,” said Minister Flaherty. “Canada has now sold its remaining interests in Chrysler Group LLC to Fiat for US$140 million, fulfilling our commitment to exit from ownership of Chrysler as quickly as possible while maximizing value for taxpayers.”
Canada will receive US$125 million for its membership interests in Chrysler, and an additional US$15 million as a portion of proceeds arising from the assignment to Fiat of an agreement between the United States Department of the Treasury and the UAW Retiree Medical Benefits Trust (VEBA). One-third of the proceeds will be remitted to the Government of Ontario in recognition of the support the Province provided.
“The auto sector is a key driver of the Ontario – and the Canadian – economy. Working together, our governments helped keep people employed, allowing them to continue to provide for their families,” said Minister Duncan. “The proceeds that Ontario will receive from this transaction will go toward deficit reduction.”
The financial assistance provided by the Governments to support the restructuring of Chrysler in the midst of the global recession was a difficult decision but was crucial in protecting jobs in Canada and positioning the auto industry for future success.
It is estimated that approximately 52,000 Canadian jobs were protected by government action to support the automotive industry.
This marks an important step forward in Chrysler’s recovery and underscores the continued strengthening of the North American auto sector.
For further information, media may contact:
Mary Ann Dewey-Plante
Office of the Minister of Finance
Department of Finance
Andrew Chornenky, Press Secretary
Minister's Office, Ministry of Finance, Ontario
Scott Blodgett, Senior Media Relations
Officer Ministry of Finance, Ontario
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