The Canadian subsidiaries of General Motors and Chrysler submitted their restructuring plans to the Canadian and Ontario governments in their bids to get emergency government loans.

 

General Motors Canada was seeking up to 7.5 billion Canadian dollars in financial aid.

 

It said it would cut jobs, overhaul its products and keep Canadian manufacturing plants open in return for the government aid.

 

Under the plan, GM's Canadian workforce, which numbered 20,000 in 2005 and currently stands at 12,500, would be reduced to 7,000 by 2010.

 

On Friday, Chrysler also submitted a restructuring plan to the Canadian officials, the same one it presented to the US lawmakers earlier this week.

 

Part of Chrysler's plan to return to profitability included an alliance with the Italian automaker Fiat and the introduction of an electric-drive vehicle by 2010.

 

The company also decided to bring employee wages in line with their US counterparts to save costs.

 

Canada's Industry Minister Tony Clement said the government would review the plans before deciding on whether to grant loans.

 

GM and Chrysler's Canadian branches, which constitute 17 percent and 20 percent of their respective overall operations, are crucial to Canada's auto industry.

 

Earlier this week, the two companies' US operations each submitted their restructuring blueprints, which included 50,000 layoffs and several plant closures in efforts to justify the federal bailout funding.