Automotive industry in Canada

Last updated

The automotive industry in Canada consists primarily of assembly plants of foreign automakers, most with headquarters in the United States or Japan, along with hundreds of manufacturers of automotive parts and systems, a sector represented by the APMA.

Contents

Canada is currently the thirteenth-largest auto-producing nation in the world, and seventh largest auto exporter by value, producing 1.4 million vehicles and exporting $32 billion worth of vehicles in 2020. [1] Canada's highest rankings ever were the second-largest producer in the world between 1918 and 1923 and third-largest after World War II.

Automotive manufacturing is one of Canada's largest industrial sectors, accounting for 10% of manufacturing GDP and 23% of manufacturing trade. Canada produces passenger vehicles, trucks and buses, auto parts and systems, truck bodies and trailers, as well as tires and machine, tools, dies and molds (MTDM). The auto industry directly employs more than 125,000 people in vehicle assembly and auto parts manufacturing, and another 380,000 in distribution and aftermarket sales and service.

History

The oldest surviving vehicle manufactured in Canada was the Redpath Messenger built in 1903. It had a wooden carriage body using a one-cylinder engine with shaft drive and two speed transmission. It was the first vehicle in automotive history with a tilt steering wheel. It weighed approximately 650 pounds and sold for between $600 and $700 with a top speed of 10 miles per hour. There is only one model known to exist, currently on display at the Canadian Automotive Museum.

The first large-scale production of automobiles in Canada took place in Walkerville, Ontario, near Windsor, in 1904. In the first year of operations, Gordon McGregor and Wallace Campbell, along with a handful of workmen, produced 117 Ford Model Cs at the Walkerville Wagon Works factory.

Russell Motor Car Company plant in Toronto in 1917 Russell Motor Car Co. Ltd., Plant No. 2, King and Dufferin streets, Toronto, Ontario Usine no 2 de la Russell Motor Car Company Ltd., aux rues King et Dufferin, Toronto (Ontario) (36108615313).jpg
Russell Motor Car Company plant in Toronto in 1917

Through marques such as Brooks, Redpath, Tudhope, McKay (Nova Scotia Carriage and Motor Car Company) Galt Gas-Electric, Gray-Dort, Brockville Atlas, Chatham, Anhunt, Russell (CCM), Hyslop and Ronald, and McLaughlin, Canada had many domestic auto brands. In 1918, McLaughlin was bought by an American firm, General Motors, and was rebranded General Motors of Canada. In the 1930s, Studebaker built its Rockne in Canada.

Driven by the demands of World War I, Canada's automotive industry had grown, by 1923, into the second-largest in the world, although it was still made up of relatively inefficient plants producing many models behind a high tariff wall. High consumer prices and production inefficiencies characterized the Canadian auto industry prior to the signing of the Canada–United States Automotive Products Agreement.

The 1967 Automotive Products Trade Agreement or "Auto Pact" represents the single most important factor in making the Canadian automotive industry what it is today. Key features of the Auto Pact were the 1:1 production-to-sales ratio and Canadian Value Added requirements. As of 2015, major car companies that operate are Fiat-Chrysler, Ford, General Motors, Honda, and Toyota. [2]

Among the 17 vehicles assembled in Canada,[ needs update ] excluding assembly costs, the amount of Canadian parts content in the average vehicle assembled in Canada was $4,105 in 2016 or 17.2% of the overall parts content, according to a study by DesRosiers. [3] The number has fluctuated between 25.6% and as low as 13% in recent years. [3] Another estimated that the overall Canadian content figure is between 20% and 24%. [3] Canadian content at plants run by Honda and Toyota, would likely be higher because they do more in-house manufacturing of parts, such as plastic-injection-molded components, than the Canadian plants operated by the Detroit Three. [3]

Electric vehicles

As the world moves towards electric vehicles, the Canadian automotive industry follows. Letenda, a Quebec electric bus manufacturer, has announced the Electrip bus, [4] their 30-foot, zero emission bus.

Canadian automotive companies

Entrance to the headquarters of Magna International, the largest automobile parts manufacturer in North America MagnaInternationalMarkham.jpg
Entrance to the headquarters of Magna International, the largest automobile parts manufacturer in North America

The following list includes Canadian-based manufacturers of automobiles, as well as automotive parts and components.

Defunct automakers and brands

Foreign automakers in Canada

Ford Motor Company of Canada's Oakville Assembly complex in Oakville, Ontario Ford Oakville Assembly.JPG
Ford Motor Company of Canada's Oakville Assembly complex in Oakville, Ontario
Stellantis Canada's Windsor Assembly complex in Windsor, Ontario Windsor Assembly Plant 1.jpg
Stellantis Canada's Windsor Assembly complex in Windsor, Ontario

As of 2017, there are 5 foreign automakers that operate manufacturing facilities in Canada and a Canadian subsidiary. [5] The headquarters of these Canadian subsidiaries are all based in Ontario, as well as their manufacturing facilities.

The following foreign automakers with manufacturing facilities in Canada include:

Parent companyCanadian subsidiaryActive manufacturing facilities in Canada
Ford Motor Company Ford Motor Company of Canada
General Motors General Motors Canada
Honda Honda Canada Inc.
Stellantis Stellantis Canada
Toyota Toyota Canada Inc.

In addition to the aforementioned foreign automakers, Hyundai, Suzuki and Volvo were 3 foreign automakers that formerly operated manufacturing facilities in Canada. In 1989, Hyundai Auto Canada Inc. opened a stamping and assembly plant in Bromont with body, paint and trim shops, as well as a pumping station for the plant, a paint residue treatment plant, and administrative offices. The Bromont plant was operational for 5 years before it closed in 1994. Suzuki initially operated CAMI Automotive assembly plant as a joint venture with General Motors of Canada, although Suzuki withdrew from the venture and ended production at the assembly in 2009. Volvo formerly operated the Volvo Halifax Assembly from 1963 to 1998.

APMA

Canada's vast automotive parts manufacturing network is represented by APMA (Automotive Parts Manufacturer's Association). In November 2020, Prime Minister Justin Trudeau announced a goal of net-zero emissions by 2050. [6] [7] Toward that end, APMA launched a project to design and build a complete zero-emission concept car with all-Canadian parts and technology, dubbed Project Arrow, [8] intended to highlight the industry's breadth of robust experience, technology and supply chain. [9] The project received $5 million in federal funding from the federal government [10] and $1.4M from the province of Quebec. [11] The Arrow project name is an homage to the Avro Arrow fighter jet, discontinued in 1959. [12] [13]

See also

Related Research Articles

<span class="mw-page-title-main">Automotive industry</span> Organizations involved with motor vehicles

The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, selling, repairing, and modification of motor vehicles. It is one of the world's largest industries by revenue.

<span class="mw-page-title-main">Brass Era car</span> American term for the early period of automotive manufacturing

The Brass Era is an American term for the early period of automotive manufacturing, named for the prominent brass fittings used during this time for such features as lights and radiators. It is generally considered to encompass 1896 through 1915, a time when cars were often referred to as horseless carriages.

<span class="mw-page-title-main">SAIC Motor</span> Chinese automotive manufacturing company

SAIC Motor Corp., Ltd. is a Chinese state-owned automobile manufacturer headquartered in Anting, Shanghai. Founded in 1955, it is currently the largest of the "Big Four" state-owned car manufacturers of China ahead of FAW Group, Dongfeng Motor Corporation, and Changan Automobile, with sales of 5.02 million vehicles in 2023.

<span class="mw-page-title-main">Automotive industry in Iran</span>

Iran’s automotive industry is the third most active industry of the country, after its oil and gas industry, accounting for 10% of Iran's GDP and 4% of the workforce.

<span class="mw-page-title-main">Lists of automobile-related articles</span>

Lists of automobile-related articles cover a wide range of topics related to cars. The lists are organized by manufacturer, region, sport, technology and so on.

Changan Automobile Co., Ltd.(CCAG) is a Chinese state-owned automobile manufacturer headquartered in Jiangbei, Chongqing. Changan Automobile traces its origins back to 1862 when Li Hongzhang set up a military supply factory, the Shanghai Foreign Gun Bureau. It was not until 1979 when the factory was repurposed to manufacture Suzuki automobiles that it became an automobile manufacturer. It is currently the smallest of the "Big Four" state-owned car manufacturers of China, namely: SAIC Motor, FAW Group, Dongfeng Motor Corporation, and Changan Automobile, with car sales of 5.37 million, 3.50 million, 3.28 million and 2.30 million in 2021 respectively.

The automotive industry in India is the world's fourth-largest by production and valuation as per 2022 statistics. As of 2023, India is the 3rd largest automobile market in the world in terms of sales.

<span class="mw-page-title-main">Automotive industry in China</span>

The automotive industry inmainland China has been the largest in the world measured by automobile unit production since 2008. As of 2024, mainland China is also the world's largest automobile market both in terms of sales and ownership.

The 2008–2010 automotive industry crisis formed part of the 2007–2008 financial crisis and the resulting Great Recession. The crisis affected European and Asian automobile manufacturers, but it was primarily felt in the American automobile manufacturing industry. The downturn also affected Canada by virtue of the Automotive Products Trade Agreement.

<span class="mw-page-title-main">Automotive industry in Pakistan</span>

The automotive industry in Pakistan is one of fastest-growing industries in the country, growing by 171% between 2014 and 2018. It accounts for 3% of Pakistan's GDP and employed a workforce of over 3.5 million people as of 2018. Pakistan is the 23rd largest producer of automobiles. Its contribution to the national exchequer is nearly Rs. 50-billion. Pakistan's auto market is among the fastest growing in Asia. 269,792 cars were sold in 2018, but this number declined to 186,716 in 2019 due to austerity measures. In the 1990s and early 2000s, Pakistan had many Japanese cars. With the launch of the first Auto Policy in 2005, Pakistan launched its first indigenous car, Adam Revo. However, after the 2008 elections, the dollar started depreciating, and due to bad governance, many automakers began to halt production, with some exiting Pakistan. Currently, the auto market is dominated by Honda, Toyota, and Suzuki. However, on 19 March 2016, Pakistan passed a second "Auto Policy 2016-21," which offers tax incentives to new automakers to establish manufacturing plants in the country. In response, Renault, Nissan, Proton Holdings, Kia, SsangYong, Volkswagen, FAW, and Hyundai have expressed interest in entering the Pakistani market. MG JW Automobile Pakistan has signed a memorandum of understanding (MoU) with Morris Garages (MG) Motor UK Limited, owned by SAIC Motor, to bring electric vehicles to Pakistan. NLC signed an agreement with Mercedes-Benz to manufacture Mercedes Actros trucks in Pakistan. Pakistan has not enforced any automotive safety standards or model upgrade policies. A few older vehicle models, including the Bolan and Ravi, continue to be sold by Suzuki. On 8 July 2021, Jolta Electric launched the production of electric motorcycles.

<span class="mw-page-title-main">Automotive industry in the United States</span>

In the United States, the automotive industry began in the 1890s and, as a result of the size of the domestic market and the use of mass production, rapidly evolved into the largest in the world. The United States was the first country in the world to have a mass market for vehicle production and sales and is a pioneer of the automotive industry and mass market production process. During the 20th century, global competitors emerged, especially in the second half of the century primarily across European and Asian markets, such as Germany, France, Italy, Japan and South Korea. The U.S. is currently second among the largest manufacturers in the world by volume.

<span class="mw-page-title-main">Subaru</span> Japanese automobile manufacturing company

Subaru is the automobile manufacturing division of Japanese transportation conglomerate Subaru Corporation, the twenty-first largest automaker by production worldwide in 2017.

<span class="mw-page-title-main">Automotive industry in Australia</span> Car making industry in Australia

A substantial car industry was created in Australia in the 20th century through the opening of Australian plants by international manufacturers. The first major carmaker was Ford Australia and the first Australian-designed mass production car was manufactured by Holden in 1948. Australian manufacture of cars rose to a maximum of almost half a million in the 1970s and still exceeded 400,000 in 2004. Australia was best known for the design and production of 'large' sized passenger vehicles. By 2009 total production had fallen to around 175,000 and the Australian market was dominated by cars imported from Asia and Europe.

This article provides an overview of the automotive industry in countries around the world.

<span class="mw-page-title-main">Automotive industry in South Korea</span>

The automotive industry in South Korea is the fifth-largest in the world as measured by automobile unit production and also the sixth-largest by automobile export volume.

<span class="mw-page-title-main">Automotive industry in Thailand</span>

As of 2019, the automotive industry in Thailand is the largest in Southeast Asia and the 10th largest in the world. The Thai industry has an annual output of more than two million vehicles, more than countries such as Belgium, Canada, the United Kingdom, Italy, Czech Republic and Turkey.

Roughly 720,000 cars per year are being sold in Nigeria every year. Only c. 140.000 of them have been built domestically.

<span class="mw-page-title-main">Automotive industry in Vietnam</span>

The automotive industry in Vietnam is a fast-growing sector mainly reliant on domestic sales. All currently produced models are designed abroad by foreign brands, and many rely on knock-down kit production. Due to high import taxes on automobiles, the Vietnamese government protects domestic manufacturing. Although Vietnam is a member of the ASEAN Free Trade Area, automobile imports fall under an exception. Since January 1, 2018, the 30% import tax has been discontinued as part of ASEAN agreements. Currently, the Vietnamese motor industry is not deemed competitive enough to make exports feasible. As of April 2018, 85% of car sales in Vietnam were produced domestically from knock-down kits.

<span class="mw-page-title-main">Automotive industry in Egypt</span>

The automotive industry in Egypt has been developing for 50 years. It can sell more than 200,000 vehicles annually and is now the second-largest market in Africa and the 42nd largest in the world, with an annual production output of over 70,000 vehicles. After experiencing many failures and success, the Egyptian Automotive industry is focusing more on assembly operations rather than manufacturing.

References

  1. "Car Exports by Country 2020". www.worldstopexports.com.
  2. Sector, Government of Canada, Innovation, Science and Economic Development Canada, Office of the Deputy Minister, Industry (13 February 2003). "Vehicles made in Canada 2017". www.ic.gc.ca. Retrieved 16 April 2018.{{cite web}}: CS1 maint: multiple names: authors list (link)
  3. 1 2 3 4 Keenan, Greg (26 September 2017). "How Canadian is your car? Auto makers keep it a closely guarded secret". The Globe and Mail. Retrieved 29 September 2019.
  4. "Electrip - Letenda". Letenda Inc. Retrieved 2022-02-25.
  5. "Vehicles made in Canada 2017 - Canadian automotive industry". Ic.gc.ca. 2018-08-13. Retrieved 2018-12-02.
  6. Tasker, John Paul (Nov 19, 2020). "Trudeau unveils new net-zero emissions plan to meet climate change targets". CBC News.
  7. "Trudeau unveils Canada's net-zero by 2050 plans". BBC News. 2020-11-19. Retrieved 2022-10-21.
  8. "APMA – Project Arrow".
  9. Jarratt, Emma (2022-10-19). "APMA gives glimpse of Project Arrow during Windsor conference". Electric Autonomy Canada. Retrieved 2022-10-21.
  10. Jarratt, Emma (2021-08-12). "Federal government puts $5 million towards Project Arrow ZEV concept car initiative". Electric Autonomy Canada. Retrieved 2022-10-21.
  11. "Quebec government pledges $1.4M for Project Arrow, other EV projects". APMA – Lead, Reach, Connect. 2021-10-04. Retrieved 2022-10-21.
  12. "THE TIP OF THE ARROW". APMA – Lead, Reach, Connect. 2020-11-16. Retrieved 2022-10-21.
  13. Makse, Brian (2021-04-02). "Project Arrow, Canada's home-grown vehicle of the future, is slowly becoming a reality". Hagerty Media. Retrieved 2022-10-21.