2010

Canadian Automotive Sector

Overview

The Automotive Industry is a crucial economic driver

Level
(2009)

Share of Total
Manufacturing

Share of
Total
Economy

GDP

$ 14.6 B

10%

1.2 %

Manufacturing
Shipments

$ 56.8 B

12%

n/a

Investment

$ 2.9 B

18%

1%

Exports

$ 39.2 B

17 %

11 %

Manufacturing
Employment

109 111

7%

1%

Auto industry is a key driver of Canadas

economy:

The largest manufacturing sector in

Canada, contributing to 10% of
manufacturing GDP and 11% of total
merchandise exports.
109,111 direct employment in auto
sector manufacturing; a further 332,975
in aftermarket, and dealerships.
Produced 1.4 million units vehicles;
domestic sales were 1.5 million units.

Passenger
Vehicle
Assembly

Automotive sector also creates

significant demand for other industries:

37% of steel foundry production

17% of rubber production
14% of processed aluminum
13% of wire goods
9% of carpeting and fabric
8% of glass

Employment
Number of
Establishments
Production (Units)

Heavy
Duty
Vehicle
Assembly

35 615

Motor
Vehicle
Parts
Production

Truck Body &

Trailer
Production

61 193

12 304

55

41

944

237

1 479 161

11 321

na

na

$19.1

$2.6

Shipments ($
Billions)

$35.1

Exports ($ billions)

$26.7

$1.4

$10.2

$0.9

Export Ratio (% of
shipments)

81%

72%

53%

35%

Canada has five major light vehicle assemblers

Assembly plants:
Toyota
2 plants in Cambridge
1 plant in Woodstock
Honda
2 plants in Aliston

Canadian light vehicle production shares by

manufacturer
45.0%
40.0%
35.0%

General Motors
2 plants in Oshawa
1 plant in Ingersoll

GM

30.0%

Toyota

25.0%
20.0%

Chrysler
1 plant in Brampton
1 plant in Windsor

Honda

15.0%
Chrysler
10.0%
Ford

5.0%

Ford
1 plant in Oakville
1 plant in St. Thomas

0.0%
2000 2002 2004 2006 2008 2010(f)2012(f)2014(f)2016(f)

Source: WardsAuto, CSM Forecasting

Exceptional Canadian Quality

Canadian assembly plants have won

about one-third (30%) of all J.D. Power
plant quality awards for North America,
which is about double the Canadian
share of regional production (16%)
since 1996.
The only Toyota plant outside Japan to
produce Lexus vehicles is in Canada.

J.D. Power Plant Quality Awards

1991

Toyota Cambridge (Gold)

1992

Toyota Cambridge (Silver)

1993

Toyota Cambridge (Bronze)

1994

Ford St. Thomas (Silver)

1995

Toyota Cambridge (Gold)

1996

Toyota Cambridge (Gold), Honda Alliston

(Silver)

1998

Ford St. Thomas (Gold)

1999

GM Oshawa 1 (Bronze)

2000

Toyota Cambridge (Bronze)

2001

Toyota Cambridge (Gold)

2002

GM Oshawa 2 (Gold)

2003

GM Oshawa 1 (Gold)

2005

GM Oshawa 2 (Gold), GM Oshawa 1 (Silver)

2006

GM Oshawa 2 (Gold), Chrysler Windsor (Silver)

2007

GM Oshawa 2 (Silver)

2009

GM Oshawa Car (Silver)

Canadian auto supply chain - a national industry

In 2009, the Canadian auto parts sector:

Had shipments $19 billion and almost
61,000 workers.
Over 1000 establishments, 78% with
less than 200 employees
Representation throughout Canada,
including:
Metal stamping and electronic
equipment manufacturers in
Western Canada.
Seats and interior trim
manufacturers in Eastern Canada.
Transmission and power train parts
manufacturers in Central Canada.
For every assembly plant opened in N.A.,
19 direct suppliers open up within 60 miles of
the plant.

Each auto assembly job creates 4.9 indirect

jobs e.g. rubber, plastics, fabricated metals
and steel products.
Dealers and aftermarket collectively employ
more than 333,000 people.

Canadas automotive sector is fully integrated in N.A.

The Canadian market represents

only 12% (1.5 million) of N.A.
vehicle sales but is responsible for
17% (1.4 million) of N.A.
production in 2009.

Canada exports 81% of vehicle

production and 53% of parts in
2009:

Integration of Canada U.S. Supply Chain:

Rear Suspension Assembly by Martinrea

- Of these exports 99% of vehicles

and 94% of parts destined for the
U.S.

Assembly plants and major parts

companies are clustered in
southern Ontario to allow an easy
and efficient integration of supply
chains.

Vehicle demand varies in different markets

Vehicle demand in global market

varies due to consumer preference,
regulatory requirement,
commodity/oil prices, and market
structure.

Global Production by Segment

(1997-2015)
Millions 30

25

20

15

Relatively high demand in

broad-based C- and D-segment in
North America, while emerging
markets like China, Central and
Eastern Europe focus on smaller
size vehicles like B- and Csegment.
Global production growth on B,C
and D-segment is expected to be
high in the future.

10

1997

2002

2007

2009

2011

2015

Global Production Growth by Segment

(2009-2015)

FF
A
E
7%
12%
6%
B
18%

D
22%
C
35%

6
Source: CSM Worldwide Global Outlook, 2009

North America is expected to be an attractive market in the long run

U.S. has a unique demand on vehicles

due to its geographic remote, safety
and fuel regulations, and sophisticated
market structure:

NA Vehicle Demand by Segment, 2011-2015

According to recent survey, value and

safety are the most important
considerations to final purchase
decision for US consumers.

Due to the new fuel efficiency

regulations, high energy prices, and
shifting consumer preference, OEMs
are expected to adjust production:

Small-sized vehicle (A-segment)

sourcing to low-cost jurisdictions
Small to Medium-sized (B-segment)
volume surges next decade
Medium-sized to luxury vehicles (C,
D-segments) reach critical mass
Large to full-frame vehicle (E, Fsegment) production is expected to
drop

Data Source: CSM Worldwide

Canadian Automotive R&D Centres

Chrysler Canada Inc.

Automotive Research & Development Centre (Windsor ON)

Ford Motor Company of Canada Ltd.

Ford Manitoba Extreme Cold Weather Test Facility (Thompson MB)

Ford Powertrain Engineering Research & Development Centre (Windsor ON)
Ford Centre for Excellence in Manufacturing (Windsor ON)

General Motors of Canada Ltd.

GM Canadian Regional Engineering Centre (Oshawa ON)

GM Cold Weather Development Centre (Kapuskasing ON)
UOIT Automotive Centre of Excellence (Oshawa ON)

Honda R&D Americas Inc. (Canada)

Environmental testing laboratory (Dartmouth NS)

Navistar / International Truck and Engine Corporation

ITEC Center for Innovation (Windsor ON)

Toyota Canada Inc.

Toyota Canada Cold Research Centre (Timmins ON)

Vehicles Made in Canada 2010

Acura CSX

Chevrolet Impala

Dodge Grand Caravan

Honda Civic Coupe

Lincoln Town Car

Acura MDX

Chrysler 300

Ford Crown Victoria

Honda Civic Sedan

Mercury Grand Marquis

Acura ZDX

Chevrolet Camaro

Chrysler Town & Country

Dodge Charger

Ford Edge

Ford Flex

Lexus RX 350

Lincoln MKT

Toyota Corolla

Toyota Matrix

Toyota RAV4

Chevrolet Equinox

Dodge Challenger

GMC Terrain

Lincoln MKX

VW Routan

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