Finance Minister Jim Flaherty says governments in both Canada and the U.S. are concerned about the viability of struggling American automakers.

Flaherty, in Washington with Industry Minister Tony Clement, met with White House aide Larry Summers to discuss co-ordinating plans for helping the struggling auto sector.

Speaking from the Canadian embassy Thursday, Flaherty said automakers run "an integrated business and that's why there needs to be an integrated response."

In total, GM is seeking US$30 billion from the U.S. government and billions more from Ottawa and Ontario.

Ottawa has said it would provide up to $4 billion in emergency loans, with GM Canada eligible for up to $3 billion, and Chrysler Canada up to $1 billion.

Flaherty said there needs to be "some assurance that this will not be a waste of taxpayer money."

Speaking to CTV's Power Play Thursday, he added, "That's the big question. Can (auto makers) demonstrate that this would be a good investment of taxpayers money."

To measure an automaker's sustainability, Flaherty said it's important to look at:

• legacy costs, such as retiree health and pension benefits
• a reasonable assumption of future volume of sales of motor vehicles in Canada
• concessions unions are prepared to make to competitive wage rates and compensation packages

Clement, in an interview with CTV Newsnet Thursday, said the focus is on making sure North American car companies are able to succeed in the new marketplace.

"This isn't just about GM, it's not just about Chrysler, it's about a whole auto sector that employs hundreds of thousands of people in Canada and millions of people in the United States," Clement said.

The visit comes as General Motors announced Thursday that auditors have expressed "substantial doubt" about the ability of the automaker to keep operating.

In its annual report, GM said auditors cited "the corporation's recurring losses from operations, stockholders' deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations" as the main reasons for their stance.

GM also said that if it can't successfully execute its complex restructuring plan then the company could "potentially be forced to seek relief through a filing under the U.S. Bankruptcy Code."

GM wants to avoid bankruptcy protection because it would scare off customers who would be fearful that their warranties might not be honoured in the future.

Flaherty was asked Thursday if it was a concern that GM could still go bankrupt even with government assistance.

"Of course it's a concern, it's a major concern," Flaherty said.

"...Government clearly has a duty to be good stewards of public funds and quite rightly I think the Canadian people would be upset with any government that would not do as much due diligence as possible before committing any tax dollars to any company and any business and that's what we're doing."

On Wednesday, Chrysler announced it plans to eliminate the third shift at its minivan assembly plant in Windsor, Ont., which means about 1,200 jobs will be cut.

Meanwhile, Ken Lewenza, national president of the Canadian Auto Workers, said Thursday that his union will be holding talks with GM this afternoon.

Lewenza said it was "too devastating" to think about the possibility of GM filing for bankruptcy. He said the union will go along with negotiations as planned with the hopes of getting a new contract ratified by March 15.

"We believe the quicker we get this behind us, the quicker General Motors gets its loans, the quicker the terms and conditions of the loan are done, we can turn the page and get the company back on track without the negativity that's associated with this restructuring," he said at a press conference Thursday.

He said the union is ready to make sacrifices to ensure that hourly costs for union employees remain competitive with other plants in the U.S. and foreign plants in Canada.

However, he said he doesn't expect any wage or benefit cuts will be necessary.

Analysts say that CAW will have little negotiating power, given the crisis in the domestic auto sector.

With files from The Canadian Press