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GM Canada Wants Government Funding For Projects

Automaker has asked the Ontario and federal governments to contribute about $140 million for projects, while slashing thousands of Canadian jobs.

TORONTO (AP) -- General Motors of Canada has asked the Ontario and federal governments to contribute about $140 million for a number of the automaker's projects, while it continues to slash thousands of Canadian jobs.

The Globe and Mail reports today that the company wants the government to kick in about 20 percent of about $700 million GM plans to invest in its engine plant in St. Catharines and a new research and development centre in Oshawa.

GM Canada's vice-president of corporate and environmental affairs David Paterson says that is a level ''consistent with the competitive amount of incentive support seen in North America.''

The latest request comes at a time when the Ontario government is coming under fire for grants it has already given to the company, only to see it slash thousands of jobs.

GM said this week it will shut its transmission plant in Windsor in 2010, putting 1,400 people out of work.

The company has also announced it will eliminate one shift at a plant in Oshawa that assembles pickup trucks, cutting 900 jobs.