Canadian Industrial Outlook: Motor Vehicle Parts Manufacturing—Spring 2017

The Conference Board of Canada, 16 pages, July 27, 2017
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This report examines the short-and medium-term economic and profitability outlook for Canada’s motor vehicle parts manufacturing industry.

Document Highlights

  • U.S. Economy—Low fuel prices, robust labour markets, and low interest rates have pushed demand for new vehicles south of the border to record levels for two consecutive years, helping to support the industry’s financial performance.

  • Innovation—Canadian automakers have streamlined operations and consolidated production in high value-added light truck assembly, with Canadian parts makers enjoying a competitive advantage. Commercialization of innovative assisted driver and efficient internal combustion engines and drivetrains are now strategic priorities in design and development.

  • Trade Uncertainty—Due to its heavy reliance on internationally integrated supply chains, the current uneasiness in North American trade relations poses a risk to Canadian auto parts makers’ investment and production on Canadian soil.

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