But there is widespread agreement that Canada can't ignore the issue or it runs the risk of being shut out of talks between the Detroit Three automakers and the U.S. government, leading to further job losses in this country.

"I think the Canadian government needs to be at the table now so it doesn't get excluded, so it can have some impact on the outcome," said Bill Pochiluk, president of West Chester, Pa.-based AutomotiveCompass. "The costs of not helping are enormous."

North American automakers -- including Ford Motor Co., General Motors Corp. and Chrysler LLC -- are reeling from the combined effects of slumping U.S. demand for their products and frozen credit markets.

On Friday, Federal Industry Minister Tony Clement said he was investigating the possibility of a joint Canada-U.S. bailout of North America's ailing auto industry.

In Canada, the federal Conservatives have long rejected direct intervention in the auto sector, but Finance Minister Jim Flaherty said recently he may be willing to invest what he calls "transformational money" in auto plants with viable prospects.

Flaherty's reluctant approach to assisting the auto sector contrasts sharply with his willingness to provide aid to Canadian banks. Just last week, the finance minister announced Ottawa will triple the amount of insured mortgages -- from $25 billion worth to $75 billion worth -- it will be able to buy from banks. The federal government also said it will make it cheaper for banks to use government insurance that guarantees borrowing.

"At the end of the day the financial markets will correct themselves with government intervention but, when it's all said and done, you're still going to need value-added manufacturing jobs and the auto industry is still the engine of the economy," Lewenza said.

Some have argued that all the industry needs is a way to revitalize consumer demand for North American-produced vehicles.

Veteran auto industry analyst Dennis DesRosiers has said any government aid for the auto industry should take the form of tax relief for consumers of new vehicles. This would in turn stimulate demand which would provide a boost for the auto manufacturers, he said.

But Lewenza said demand isn't an issue in Canada, where there was actually a slight increase in purchases of new vehicles last month -- a sharp contrast to the bleak numbers south of the border, where GM and Ford's sales declined by 45 per cent and 30 per cent year over year, respectively.

Lewenza called on the government to impose tariffs on vehicles that are manufactured elsewhere and imported into Canada to protect Canadian jobs.

Pochiluk proposed a combination of government-backed loan guarantees and buyer incentives from both government and business to keep automakers alive while bringing consumers back onto showroom floors, particularly in the U.S.

Pochiluk said the job losses that could result if the Canadian government ignores the woes of the auto industry -- it's estimated that 250,000 people in Ontario alone are employed by the auto and auto parts industries.

"Because of the enormous impact on jobs across the entire economy, the Canadian government would be smart to participate," he said. "It'll cost less doing it this way."

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