Canada’s Motor Vehicle Manufacturing Industry: Industrial Outlook Autumn 2012

The Conference Board of Canada, 9 pages, November 2012
Report by Ksenia Bushmeneva
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This report examines the short-and medium-term economic and profitability outlook for Canada’s Motor Vehicle Manufacturing Industry.

Document Highlights

  • 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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