0. Canadian Automotive Sector Overview
2010
Canadian Automotive Sector Overview

1. Share of Total Manufacturing
The Automotive Industry is a crucial economic driver
Level
(2009)
Share of Total Manufacturing
Share of Total Economy
GDP
$ B
10%
1.2 %
Manufacturing Shipments
$ B
12%
n/a
Investment
$ 2.9 B
18%
1 %
Exports
$ 39.2 B
17 %
11 %
Manufacturing Employment
7 %
Auto industry is a key driver of Canada’s economy:
The largest manufacturing sector in Canada, contributing to 10% of manufacturing GDP and 11% of total merchandise exports.
109,111 direct employment in auto sector manufacturing; a further 332,975 in aftermarket, and dealerships.
Produced 1.4 million units vehicles; domestic sales were 1.5 million units.
Automotive sector also creates significant demand for other industries:
37% of steel foundry production
17% of rubber production
14% of processed aluminum
13% of wire goods
9% of carpeting and fabric
8% of glass
Passenger Vehicle Assembly
Heavy Duty Vehicle
Assembly
Motor Vehicle Parts
Production
Truck Body & Trailer
Employment
35 615
61 193
12 304
Number of Establishments 55 41
944
237
Production (Units)
11 321 na
Shipments ($ Billions)
$35.1
$19.1
$2.6
Exports ($ billions)
$26.7
$1.4
$10.2
$0.9
Export Ratio (% of shipments)
81%
72%
53%
35%
Canada stats
Auto industry is Canada’s largest manufacturing sector.
There are large economic spin-offs - each auto assembly job creates 5 indirect jobs.
Auto industry creates demand in many other industries - 39% in other manufacturing, 27% in business services, 7% in wholesale trade, 7% in retail trade and 6% in transportation and storage.
On average, for every one assembly plant opened in N.A., 19 direct suppliers open up within 60 miles of the plant.

2. Canadian light vehicle production shares by manufacturer
Canada has five major light vehicle assemblers
Assembly plants:
Toyota
2 plants in Cambridge
1 plant in Woodstock
Honda
2 plants in Aliston
General Motors
2 plants in Oshawa
1 plant in Ingersoll
Chrysler
1 plant in Brampton
1 plant in Windsor
Ford
1 plant in Oakville
1 plant in St. Thomas
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
2000
2002
2004
2006
2008
2010(f)
2012(f)
2014(f)
2016(f)
Canadian light vehicle production shares by manufacturer
Source: Ward’sAuto, CSM Forecasting GM
Ford
Honda
Toyota
Chrysler
Canada Assemblers
12 high volume assembly plants - 13th plant to begin production at the end of 2008.
Canada is currently “punching above its weight” in vehicle assembly due to on-going investment, quality and productivity.
Canada produces a range of vehicles, primarily in the mid-sized, larger segments.

3. J.D. Power Plant Quality Awards
Exceptional Canadian Quality
Canadian assembly plants have won
about one-third (30%) of all J.D. Power
plant quality awards for North America,
which is about double the Canadian
share of regional production (16%)
since 1996.
The only Toyota plant outside Japan to
produce Lexus vehicles is in Canada.
J.D. Power Plant Quality Awards
1991
Toyota Cambridge (Gold)
1992
Toyota Cambridge (Silver)
1993
Toyota Cambridge (Bronze)
1994
Ford St. Thomas (Silver)
1995
1996
Toyota Cambridge (Gold), Honda Alliston (Silver)
1998
Ford St. Thomas (Gold)
1999
GM Oshawa 1 (Bronze)
2000
2001
2002
GM Oshawa 2 (Gold)
2003
GM Oshawa 1 (Gold)
2005
GM Oshawa 2 (Gold), GM Oshawa 1 (Silver)
2006
GM Oshawa 2 (Gold), Chrysler Windsor (Silver)
2007
GM Oshawa 2 (Silver)
2009
GM Oshawa Car (Silver)

4. Canadian auto supply chain - a national industry
In 2009, the Canadian auto parts sector:
Had shipments $19 billion and almost
61,000 workers.
Over 1000 establishments, 78% with
less than 200 employees
Representation throughout Canada, including:
Metal stamping and electronic equipment manufacturers in
Western Canada.
Seats and interior trim
manufacturers in Eastern Canada.
Transmission and power train parts manufacturers in Central Canada.
For every assembly plant opened in N.A.,
19 direct suppliers open up within 60 miles of the plant.
Each auto assembly job creates 4.9 indirect jobs e.g. rubber, plastics, fabricated metals and steel products.
Dealers and aftermarket collectively employ more than 333,000 people.
Auto parts
As the Detroit 3 lose market share, so do the parts suppliers tied to them.
Detroit 3 parts suppliers generally have not been successful in supplying Japanese assemblers. For example, Magna’s supply to Japanese firms is only 5% of Magna’s total sales.
The parts sector can be divided into 4 segments:
1. less than five tier one, global companies
2. a handful (less than 10) tier 2 firms who need to expand and invest abroad with assemblers.
3. a significant net work of Japanese parts suppliers (approximately 80 firms) who are doing well given growth in market share of Asian firms
4. Smaller tier 3 and tier 4 SMEs who are struggling due to rise of CDN dollar, limited resources to innovate, and lack of diversified customer base.

5. Canada’s automotive sector is fully integrated in N.A.
The Canadian market represents only 12% (1.5 million) of N.A. vehicle sales but is responsible for 17% (1.4 million) of N.A. production in 2009.
Canada exports 81% of vehicle production and 53% of parts in 2009:
Of these exports 99% of vehicles and 94% of parts destined for the U.S.
Assembly plants and major parts companies are clustered in southern Ontario to allow an easy and efficient integration of supply chains.
Integration of Canada – U.S. Supply Chain:
Rear Suspension Assembly by Martinrea

6. Global Production by Segment Global Production Growth by Segment
Vehicle demand varies in different markets
Global Production by Segment
( )
Vehicle demand in global market varies due to consumer preference, regulatory requirement, commodity/oil prices, and market structure.
Relatively high demand in
broad-based C- and D-segment in North America, while emerging markets like China, Central and Eastern Europe focus on smaller size vehicles like B- and C-segment.
Global production growth on B,C and D-segment is expected to be high in the future.
Global Production Growth by Segment
( )
Source: CSM Worldwide Global Outlook, 2009

7. NA Vehicle Demand by Segment, 2011-2015
North America is expected to be an attractive market in the long run
U.S. has a unique demand on vehicles due to its geographic remote, safety and fuel regulations, and sophisticated market structure:
According to recent survey, value and safety are the most important considerations to final purchase decision for US consumers.
Due to the new fuel efficiency regulations, high energy prices, and shifting consumer preference, OEMs are expected to adjust production:
Small-sized vehicle (A-segment) sourcing to low-cost jurisdictions
Small to Medium-sized (B-segment) volume surges next decade
Medium-sized to luxury vehicles (C, D-segments) reach critical mass
Large to full-frame vehicle (E, F- segment) production is expected to drop
NA Vehicle Demand by Segment,
Data Source: CSM Worldwide

8. Canadian Automotive R&D Centres
Ford Motor Company of Canada Ltd.
Ford Manitoba Extreme Cold Weather Test Facility (Thompson MB)
Ford Powertrain Engineering Research & Development Centre (Windsor ON)
Ford Centre for Excellence in Manufacturing (Windsor ON)
Chrysler Canada Inc.
Automotive Research & Development Centre (Windsor ON)
General Motors of Canada Ltd.
GM Canadian Regional Engineering Centre (Oshawa ON)
GM Cold Weather Development Centre (Kapuskasing ON)
UOIT Automotive Centre of Excellence (Oshawa ON)
Navistar / International Truck and Engine Corporation
ITEC Center for Innovation (Windsor ON)
Honda R&D Americas Inc. (Canada)
Environmental testing laboratory (Dartmouth NS)
Toyota Canada Inc.
Toyota Canada Cold Research Centre (Timmins ON)

9. Vehicles Made in Canada 2010
Acura CSX
Acura MDX
Acura ZDX
Chevrolet Camaro
Chevrolet Equinox
Chevrolet Impala
Chrysler 300
Chrysler Town & Country
Dodge Charger
Dodge Challenger
Dodge Grand Caravan
Ford Crown Victoria
Ford Edge
Ford Flex
GMC Terrain
Honda Civic Coupe
Honda Civic Sedan
Lexus RX 350
Lincoln MKT
Lincoln MKX
Lincoln Town Car
Mercury Grand Marquis
Toyota Corolla
Toyota Matrix
Toyota RAV4
VW Routan