OTTAWA - CANADA'S industry minister will meet with Ford, Chrysler and General Motors executives on Wednesday, then head to Washington to discuss the Big Three automakers' hopes for a bailout, his office said on Tuesday.

Industry Minister Tony Clement will be joined by Ontario Minister of Economic Development Michael Bryant on the trip.

In Washington, Mr Clement and Mr Bryant will 'meet with officials to gather information on options being considered by the US government to assist the automotive sector,' Mr Clement's office said in a statement.

Earlier, Canadian Auto Workers (CAW) union president Ken Lewenza said the failure of Ford Motor Company, Chrysler LLC or General Motors Corporation would be a 'devastating blow to the economy, a devastating blow to consumers out there and quite frankly devastating to our members.' Mr Lewenza urged Ottawa and Washington to come to their aid.

As he spoke, the chief executives of the Big Three pleaded with the US Congress for a US$25 billion (S$38.1 billion) rescue package.

Ottawa was asked for help too, but has remained uncommitted, while assessing options.

The Big Three employ 40,000 Canadians at its assembly plants in Ontario province, and are responsible for an estimated 300,000 indirect jobs in this country, including parts suppliers.

Almost 90 per cent of vehicles assembled in Canada are exported to the United States, while 65 per cent of Canadian-made automotive parts head south.

Statistics Canada said exports of Ford, Chrysler and GM vehicles and parts peaked at US41.4 billion in 1999, before falling by almost one-third since then.

The auto industry as a whole now accounts for about three percent of Canada's gross domestic product, said Mr Jim Stanford, CAW chief economist.

'It's not even imaginable what would happen in communities like Oshawa, Windsor, St. Catharines, Oakville' in southern Ontario, if the Big Three do not bounce back, commented Mr Lewenza.

'These communities are dominated by the auto industry.' -- AFP

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