The Canadian Automobile Industry

1. Overview of Canada automobile industry and the US market.

a. General background:

- The automobile industry in Canada has a great contribution to the economy of this country, making over 550,000 job opportunities. The industry creates nearly 12% of the contribution in manufacturing to GDP of Canada and occupies 23% of the country’s total exports of goods. It also promotes innovation and renewal in high technology products. Between 1991 and 2001, with an average investment of $ 2.9 billion per year this is the highest investment of all manufacturing sectors.

-This industry of Canada has more than 100 years of history. Started from early 20th century with fast growing due to the effect of “Auto Pact”, but then it has slowed down and declined

The production activity in Canada is strongly influenced by the fast growth in Mexico. Mexico seems to taking over the position and share of Canada in market. There are five main MNC OEMs (General Motor, Toyota, Honda, Fiat, Ford) who dominate the industry and 9 big main assembling plants. The operations of the industry mainly focus on Ontario.

c. Overview of the U.S automobile market

The U.S. automobile industry is leading the innovation at the moment. New research and development system are being done for the industry for the best response to the competition of the new age. According to the Auto Alliance, the automobile industry spends approximately $100 billion on R&D worldwide in general and $18 billion in U.S in particular per year.

Also in 2016, the United States produced, assembled and exported almost 2 million new, light vehicles priced at about $57 billion around the world, with $80 billion of additional exports of automotive parts. With an open investment policy, big consumption market, high skill workforce, good infrastructure, and the reasonable incentives, The U.S is surely the primary car for any automobile industry, including

The U.S automobile market in the economic integration

“FCA US, Ford, and General Motors have more than 200 assembly plants, manufacturing facilities, R&D and distribution centers, and other facilities, which directly employ approximately 232,000 U.S. workers in thirty-two states. In addition, since beginning operations in the United States in the early 1980s, international automakers have invested over $75 billion in 32 U.S.-based production facilities in 14 states, as well as additional research and development facilities in 16 states. They directly employ more than 130,000 Americans.

In 2016, the United States exported almost 2.1 million new, light vehicles valued at $57 billion to almost every country around the world, with additional exports of automotive parts valued at approximately $80 billion. The United States also exported $5.5 billion used vehicles and almost $5 billion in medium and heavy-duty trucks in 2016. With an open investment policy, a large consumer market, a highly skilled workforce, available infrastructure, and local and state government incentives, the United States is the premier for any automotive