Canada’s Motor Vehicle Manufacturing Industry: Industrial Outlook Autumn 2012
This report examines the short-and medium-term economic and profitability outlook for Canada’s Motor Vehicle Manufacturing Industry.
- Surging Sales—Pent-up demand for vehicles in the U.S. is expected to
persist until 2014, leading to strong growth in sales volumes.
- Rising Competition—Honda and Toyota have returned to full production
and are quickly re-gaining lost market share. The downturn in the new
motor vehicle market in Europe may also induce European automakers to
push for more sales in North America, triggering more aggressive pricing
and squeezing the already-thin industry margins.
- Looming U.S. Fiscal Cliff—Uncertainty surrounding U.S. fiscal policy,
and more specifically the fast-approaching fiscal cliff, poses a major risk
to the outlook.
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