Canada’s Motor Vehicle Manufacturing Industry: Industrial Outlook Spring 2016

The Conference Board of Canada, 15 pages, June 22, 2016
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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

  • Product Diversity—After several years of uncertainty, General Motors is scheduled to lose three of the four core vehicles it currently produces at its Oshawa Consolidated and Flex plants by 2017, with no announced plan for any replacement vehicles.
  • Vehicle sales—U.S. vehicle sales will remain around the 17-million mark through the medium term, buoyed by the pent-up demand created during the recession when purchases of new vehicles suffered.
  • Investment—Although assemblers such as GM, Fiat Chrysler Automotive, and Toyota are making investments in existing Canadian plants, aggregate investment is well below its peak, limiting the industry’s ability to increase production much beyond current levels within the forecast period.

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