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Automotive

Canadian Assembly Plants have a Global Reputation for Exceptional Quality

Part of a fully integrated North American market with annual sales of US$260 billion in original equipment parts— The automotive industry is Canada’s largest manufacturing sector. It accounts for 17 percent of North American vehicle production and has 2.5 million units of installed production capacity. Because of its strategic position within the NAFTA region, Canada is among the world’s largest exporters of automotive goods. In 2010, Canada’s auto sector had revenues totalling $68.5 billion and exports worth $51.5 billion.

Source: Industry Canada

Leading global automakers and original equipment manufacturers locate in Canada— Five of the world’s largest automakers—Chrysler, Ford, General Motors, Honda and Toyota—along with leading truck and bus manufacturers such as Hino, Motor Coach Industries, PACCAR and Volvo Bus, operate production facilities in Canada. Many of the world’s largest original equipment suppliers also have facilities in Canada including Denso, Continental, Aisin Seiki, Johnson Controls and TRW. 

Support for innovation— The auto sector is supported by a strong R&D base both at the federal and provincial levels. From 2000 to 2009, R&D spending in Canada’s auto industry has averaged $485 million per year. In addition to leveraging the Scientific Research & Experimental Development (SR&ED) program, companies partner with universities, colleges and public research centres to undertake joint research projects. Key organizations include the AUTO21 Network Centres of Excellence, the National Research Council and the metals and materials laboratories of Natural Resources Canada.

Recent Foreign Investments – Automotive

 Map of Canada showing three locations: Oshawa, London; and Windsor, Ontario

General Motors (GM) added two shifts at its assembly complex in Oshawa, Ontario, boosting employment by 1,300 jobs. GM also invested $480 million in its St. Catharines powertrain plant to produce a new engine and a new six-speed transmission, boosting employment by 800 jobs.
Toyota added a second shift at its assembly plant in Woodstock, Ontario, increasing employment by 800 jobs and doubling capacity to 150,000 units annually. This concludes a $1.1 billion investment project to construct Toyota’s third assembly plant in Canada.
Ford completed a $590 million investment in Windsor, Ontario to revamp its Essex Engine Plant and upgrade its advanced powertrain R&D centre. Mexico’s Nemak invested $8 million in its Windsor Aluminum Plant to design and manufacture engine blocks for GM in Canada, the U.S. and Australia.
Germany’s Brose Automotive completed a $20 million expansion of its plant in London, Ontario. This expansion will enable the facility to supply approximately 2.5 million car seat gearboxes to manufacturers across North America each year.