U.S. Slowdown—Motor vehicle sales in the United States are falling dramatically as consumers retrench from the global financial crisis.

Environmental Conservation—A heightened focus by U.S. and domestic consumers on fuel efficiency will persist alongside elevated energy prices and new government fuel emissions standards.

Canadian Dollar—Although it has weakened over the course of this year, the Canadian dollar is expected to rise back above US$0.85. At this level, the dollar dampens prospects for vehicle exporters, who are being forced to contend with competitive headwinds from low-cost foreign suppliers and more competitive U.S. labour settlements.