The Canadian Industrial Outlook Service includes detailed five-year forecasts in 16 key Canadian industries. This report examines the short-and medium-term economic and profitability outlook for Canada’s Motor Vehicle Manufacturing Industry.
Canada’s Motor Vehicle Manufacturing Industry: Spring 2009
Canada’s Motor Vehicle Manufacturing Industry: Spring 2009
Industry Economic Analysis
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- U.S. Recession—Motor vehicle sales in the United States will remain very weak as consumers retrench from the global financial crisis.
- Assembler Solvency—The restructuring of Chrysler under Chapter 11 bankruptcy, and General Motors’ heavy dependence on public aid, present ongoing challenges to the viability of the major auto manufacturers.
- Manufacturer ownership—The high degree of union ownership of one or more of the Detroit Three parent companies could provide downside risk for investment in the medium term.
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