Issues and Trends in the Automotive Industry: Implications for Eastern Ontario

Only available on StudyMode
  • Download(s) : 33
  • Published : May 26, 2012
Open Document
Text Preview
Issues & Trends in the Automotive Industry: Implications for Eastern Ontario

Prepared for:

The Ontario East Economic Development

Table of Contents
EXECUTIVE SUMMARY ........................................................................................................................ 1 1. INTRODUCTION................................................................................................................................... 3 2. STRUCTURAL INTEGRITY OF THE AUTO SECTOR ................................................................ 4 3. AN INTEGRATED MARKET ............................................................................................................ 12 4. LONG TERM OUTLOOK .................................................................................................................. 16 5. IMPLICATIONS FOR THE CANADIAN AUTOMOTIVE INDUSTRY ...................................... 22 5.1 5.2 5.3 LIGHT VEHICLE ASSEMBLY ................................................................................................ 22 ORIGINAL EQUIPMENT PARTS MANUFACTURING...................................................... 23 SPECIAL ISSUES ....................................................................................................................... 24 5.3.1 5.3.2 6. 6.1 6.2 The Beacon Project........................................................................................................... 25 Canada/U.S. Border ......................................................................................................... 26

ORIGINAL EQUIPMENT PARTS SUPPLIERS IN EASTERN ONTARIO ........................... 28 LIST OF COMPANIES .............................................................................................................. 28 ADDITIONAL COMPANIES .................................................................................................... 32 6.2.1 Clusters ............................................................................................................................. 33

7. PERCEIVED POSITION OF EASTERN ONTARIO FOR AUTOMOTIVE MANUFACTURING ................................................................................................................................ 34 7.1 8. BACKGROUND .......................................................................................................................... 34 7.1.1 Industry Feedback from Eastern Ontario Automotive Parts Manufacturing Companies 34 CONCLUSIONS .............................................................................................................................. 38

Executive Summary
The Canadian light vehicle assembly sector has performed strongly in recent years. Canada assembles approximately 1.8 vehicles for each vehicle sold in this country and has maintained a 15-17 percent share of North American production. This is likely to continue with Canada’s existing assembly facilities appearing secure with regard to their short term future. Over the longer term the Canadian industry will not be isolated from the broader structural dynamics seen in the auto sector as a whole. Some assemblers, notably Ford and GM have excess assembly capacity in North America and will be forced to permanently close assembly plants. Oshawa will remain a significant vehicle assembly location for GM. Eastern Ontario should actively target suppliers to Oshawa as potential candidates to locate in the region. Asian and European vehicle companies will be increasing their North American assembly capacity in the coming decade. It is possible that the increases in capacity from European assemblers in North America will come through “third-party” assemblers such as Magna-Steyr. Due to the scope of these investments and the incentives required, competition for greenfield assembly facilities is at a provincial, rather than regional or municipal level. Ontario is a strong location that will compete for these facilities....
tracking img