Canada could lose more than 580,000 jobs within five years if Detroit's Big Three automakers go out of business most of them in Ontario, says a report obtained by the Toronto Star.
The review, prepared for Ontario's Ministry of Economic Development and to be released today, warns that the collapse of General Motors, Ford Motor and Chrysler LLC would send lasting shock waves through the economy.
If auto output by US-based manufacturers in Canada were cut in half, at least 157,400 jobs would be lost right away, 141,000 of them in Ontario.
By 2014, job losses would rise to 296,000 nationally, including 269,000 in Ontario.
If production were to cease completely, 323,000 jobs would be lost immediately in Canada, including 281,800 in this province, rising to 582,000 nationally and 517,000 in Ontario by 2014.
The Ontario Manufacturing Council, a provincial government panel, commissioned the 11-page report, which was prepared by the Center for Spatial Economics.
The report paints a gloomy picture if the provincial government and Ottawa and Washington do not bail out the automakers.
"The depreciation of the dollar, lower interest rates, and lower production costs eventually help the economy to partially recover (over the following five years, 2015 to 2019) but the loss of the Detroit Three leaves a permanent dent in Canada's economy in terms of jobs and output," the report says.
