By Jeffrey Jones and John McCrank

WINNIPEG/TORONTO, Nov 14 (Reuters) - Canada's industry minister said on Friday that a co-ordinated U.S.-Canada bailout package for the struggling auto industry may be possible, and he plans a fact-finding trip to Detroit and Washington to explore the option.
Tony Clement, whose home province of Ontario is bleeding jobs due to cutbacks by the Big Three Detroit automakers, said he is intensifying efforts to find solutions for the industry as the U.S. government weighs a request for $25 billion in aid.
"People talk about it, they talk about the need to have an integrated solution, and from a theoretical point of view that makes sense," Clement told reporters at a convention of his Conservative Party in Winnipeg.
"But how viable is it? When you drill down on it, what exactly does that mean? And that's why I have an obligation to my caucus and Cabinet colleagues to do some more information gathering."
Clement said he plans to visit industry and government officials in Detroit and Washington in the coming days to glean more data. He cautioned that he has not set a deadline for agreeing to any plan.
The minister did not discuss what Canada might be willing to contribute, or demand, as part of any joint package, or who would be in charge of distributing rescue funds.
Clement made his remarks as Ontario Premier Dalton McGuinty met in Toronto with executives from General Motors of Canada , Ford Motor Co of Canada, Chrysler Canada , Toyota Canada Inc and Honda Motor Canada Inc . The automakers, which all have big manufacturing operations in Ontario, had been expected to ask for millions of dollars in government support.
McGuinty said the provincial government -- which has indicated it expects to swing to a budget deficit because of the economic slowdown -- would do all it could to support the industry, but would demand measures that protect employment and benefit the provincial economy.
"There has to be some assurance that we're talking about enhanced prospects for long-term viability here in Ontario, including the protection of our jobs," McGuinty said told reporters at the provincial legislature.
The association representing the carmakers said 130,000 jobs are directly linked to automakers and suppliers in Ontario and one in six jobs in the province is in some way tied to the sector.
McGuinty said the industry generates C$28 billion ($22.8 billion) annually for the province.
But Ontario has slipped into "have-not" status among Canadian provinces, forecasting a C$500 million deficit.
That's largely due to the beating the manufacturing sector has taken due to the downturn in the U.S. economy, where more than three-quarters of Canadian exports are sent, and it has made critics more vocal about how tax dollars are being spent.
The automobile industry -- especially the Big Three -- has been a major casualty of the crisis and, before economic conditions recently worsened, sky-high fuel prices.
Canadian Finance Minister Jim Flaherty said on Thursday that any rescue plan should be in exchange for shifting production to more fuel efficient, technologically advanced vehicles that customers would want to buy.
But a U.S. package for the industry is anything but certain, with Washington still debating the issue in the wake of a $700 billion bailout of the financial sector.
"It appears that there are some stumbling blocks to a consensus, being driven by the U.S. Congress at this point, and certainly a stumbling block, even if it gets through Congress, from the U.S. administration that's currently in existence," Clement said.
($1-$1.23 Canadian)

(Reporting by Jeffrey Jones; editing by Rob Wilson) Keywords: AUTOS/CANADA (jeff.jones@thomsonreuters.com; +1 403 531 1624; Reuters Messaging: jeff.jones.reuters.com@reuters.net)

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