This report examines the short-and medium-term economic and profitability outlook for Canada’s Motor Vehicle Parts Manufacturing Industry.
Canada’s Motor Vehicle Parts Manufacturing Industry: Industrial Outlook Autumn 2011
Canada’s Motor Vehicle Parts Manufacturing Industry: Industrial Outlook Autumn 2011
Industry Sector Economics
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- Improving Sales—After more than three years of spending austerity, there is a lot of pent-up demand for vehicles. Strong replacement demand, increased manufacturer’s incentives, and low financing rates are driving sales. Buying intentions remain strong.
- Parts Production Declines—Demand for parts fell as all Japanese and some North American automakers limited production following supply-chain disruptions causd by the tsunami in Japan and severe flooding in Thailand.
- International Competition Increases —The strong Canadian dollar is eroding Canada’s cost competitiveness, limiting price appreciation, and squeezing profit margins.
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