TORONTO — James Arnett, a high-profile lawyer with corporate restructuring experience, has been named as special adviser on the auto sector by the governments of Canada and the province of Ontario.
The appointment of Mr. Arnett, announced late on Monday, comes just ahead of Friday's deadline for the Canadian arms of Detroit's Big Three – General Motors Corp., Ford Motor Co., and Chrysler – to present business plans to Ottawa and Toronto and make their case for government aid.
“The experience and perspective Mr. Arnett brings to this role will be significant in assisting the prime minister and the premier to evaluate the condition of the auto industry and in developing possible future options,” said Tony Clement, the federal industry minister.
Mr. Arnett advised Ontario on the steel industry from 2004 to 2006, which included the restructuring of Stelco Inc.
He was also president and chief executive of beer giant Molson Inc. from 1997 to 2000, where he led the restructuring of that company.
“Taxpayers deserve to know that, if we do indeed move forward, solid due diligence has been done and will result in a transformed auto industry with the jobs and prosperity that Ontarians want and deserve,” said Michael Bryant, Ontario's industry minister.
No formal figure has been announced on the amount of aid the struggling auto makers are seeking in Canada.
In the United States, the companies have asked for $25-billion in immediate funding and will make their cases for the aid before the U.S. Congress on Wednesday.
The GM, Ford and Chrysler have about 14 to 15 per cent of their manufacturing capacity in Canada, so some analysts have suggested it would make sense for Canada to offer about 15 per cent of what the U.S. pledges.
© The Globe and Mail
