The Ontario government is partnering with the Canadian and American governments to restructure Chrysler and help it become stronger and more sustainable, the province said Thursday.

Ontario is contributing loans to Chrysler worth $1.258 billion, which combined with $2.517 billion from the federal government, brings Canada’s total commitment to Chrysler’s restructuring to $3.775 billion.

This support is proportional to the US$12.08 billion funding package for Chrysler announced earlier Thursday by President Obama.

The governments of Canada and Ontario will receive a combined 2% share in a restructured Chrysler LLC, and Canada will appoint one of nine board members of the restructured company.

“The auto sector sustains thousands of current jobs for Ontario families and supports the pensions of many of our retirees. That’s why we’re partnering with the federal and U.S. governments to put the industry on a more sustainable footing for the long term,” stated Ontario Premier Dalton McGuinty.

The auto sector in Ontario supports 400,000 jobs.

IE