Archives
 
 
Current Issue
 
Trade-Links
Quarterly
Issue: Oct-Dec 2006
 
   
 
 
 

Ontario's Automobile Sector
Driving Force in North America
With the majority of Canada's vehicle production taking place in Ontario, the province's automotive industry is taking a strong lead as the biggest success story in this part of the G7 country.
 
Future Projects
Cdn $1.1 billion In May 2006, Linamar announced an investment in automotive power trains and related research, development and plant investments
Cdn $154 million In May 2006, Honda announced a Greenfield investment to build a unique new fully integrated engine facility in Alliston
Cdn $100 million In January 2006,Nemak announced a project to launch a new
innovative engine block process at its Windsor, Ontario facility
   

With the majority of Canada's vehicle production taking place in Ontario, the province's automotive industry is taking a strong lead as the biggest success story in this part of the G7 country.

The majority of Canada's automotive production takes place in the province of Ontario, producing one in six vehicles built in North America. Ontario is home to an auto assembly industry, which includes 12 assembly plants operated by six of the world's largest auto makers and 45,000 highly-skilled workers, and an auto manufacturing parts industry with more than 400 companies and 90,000 workforce. In total there are 331,000 jobs in Ontario's auto industry from manufacturing to sales to service. There are additional jobs available in supplier industries such as steel, plastics and glass. As a result of this Ontario continues to be the leading hub for automobile production in the North American industry.

Positive business and investment climate
The Ontario government has been at the forefront of Ontario's auto industry. The government's auto strategy has attracted more than Cdn$7 billion in new investments in the recent years in creating and retaining thousands of jobs.

Ontario Automotive Investment Strategy
It was in April 2004, the Ontario government announced the Automotive Investment Strategy in order to accelerate innovation and global competitiveness in the province’s automotive sector. Cdn$500 million was the investment needed over a five-year program to train people for the next generation of innovation by supporting large-scale capital projects that contribute to the long-term competitiveness of the auto industry. Automotive assemblers and Tier One auto parts companies are eligible for government investment in strategic projects of at least Cdn$300 million and/or 300 jobs, if corporate innovation, advanced skills training, public infrastructure, improved energy efficiencies or new environmental technologies are involved. So far the project has created over 400 new jobs in Oshawa, Ingersoll and St. Catharines. The project also supports auto industry research, education and training in Ontario.

Ontario’s competitive advantages
The Ontario automotive success story would not be complete without reviewing compelling advantages that clearly distinguish the province as one of the most competitive locations in the world for investment. Most of the biggest auto makers and parts suppliers have a presence along Ontario’s major highway (Highway 401), which travels for 820 km along southwestern Ontario and provides easy access to international markets. The towns dotting this 820 km highway are home to some of the biggest carmakers and auto suppliers around. They are represented by a total of 12 assembly plants along 401. 43% of auto manufacturing employees have completed their post-secondary education contributing to the competitive advantage of Ontario workforce on-the-job average is 9 years in manufacturing, which translates into lower training costs.

Copyrights New Media 2006. All Rights reserved.