Ontario's Premier Dalton McGuinty hints his province and Ottawa will quickly follow suit with its own aid package now that Washington has announced US$17 billion in loans for the beleaguered American auto industry.

"We're pleased that President Bush has taken a step forward and we look forward to responding shortly," McGuinty told CTV Toronto on Friday.

"Things will happen now sooner rather than later ... we'll do it in a co-ordinated effort with the federal government."

Harper and McGuinty are expected to unveil Canada's auto industry aid package on Saturday.

The Canadian package could be more than C$3 billion. Both Ontario and Ottawa have said they would give Canada's auto manufacturing industry a package that is proportionate to the Detroit Three's operations in this country, which are estimated at about 20 percent of North American production capacity.

However, McGuinty has said this package is likely just the beginning, and that no matter what happens, the number of people employed in Ontario's auto sector is likely to shrink.

A spokesman for Ontario's economic development minister Michael Bryant said earlier that the U.S. bailout is "good news," although the province is still reviewing the package.

On Friday, Washington said it would give American auto manufacturers GM and Chrysler US$13.4 billion in short-term financing, which will be taken from the $700-billion Wall Street rescue program passed by Congress in the fall. Another $4 billion will be added later. Ford has said it does not need immediate help.

Some critics have argued the North American manufacturers are badly-run businesses that don't deserve saving.

The Big Three have argued that they are being hammered by the credit crunch, which has dramatically driven down sales for all auto manufacturers, foreign and domestic.

General Motors has issued a public apology for some of its failings as a business, and has promised to do better.

Gerry Fedchun of the Automotive Parts Manufacturers Association told CTV Newsnet that the North American auto industry has made big gains in quality over the last decade -- and that should help the industry in the future. But first, he said, that information has to be given to Canadian consumers.

"The quality now is equal to all the various companies," he said.  "People still don't know that, and we've got to get that news to them."