Canada’s Motor Vehicle Parts Manufacturing Industry: Industrial Outlook Autumn 2014
The Conference Board of Canada, 12 pages
December 23, 2014
Todd A. Crawford
This report examines the short-and medium-term economic and profitability outlook for Canada’s Motor Vehicle Parts Manufacturing Industry.
- Vehicle Sales Are Up—Motor vehicle sales are setting new records in Canada and continue to improve rapidly in the U.S.; therefore, car manufacturers have ramped up production.
- Exchange Rate—The value of the Canadian dollar has fallen significantly over the last year and a half, improving the competitiveness of Canadian auto manufacturers and parts exporters in the global market.
- Auto Production Moves South—Auto manufacturers have been shifting production out of Canada to countries where production costs and exchange rates are more favourable. The expected closure of General Motors’ plant in Oshawa in 2016 shows that the struggles are not over.